We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chemours (CC) Gains on Opteon Demand Amid Input Cost Woes
Read MoreHide Full Article
The Chemours Company (CC - Free Report) is benefiting from higher demand for its Opteon refrigerants, strong execution, higher pricing and cost-cutting measures amid headwinds from raw material cost inflation.
The company’s shares are up 4.4% over a year, compared with a 0.9% rise recorded by its industry.
Image Source: Zacks Investment Research
Chemours is gaining from higher Opteon adoption, strong execution and its cost-reduction and pricing actions. The company’s Thermal & Specialized Solutions segment is benefiting from strong demand in refrigerants across most regions. It is also witnessing strong adoption of the Opteon platform, which is supporting volumes in this segment. Chemours remains committed toward driving Opteon adoption.
Chemours is also gaining from its efforts to reduce costs. Its cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support its margins in 2022. The company is taking actions to reduce fixed costs in the Titanium Technologies division. It is also taking appropriate pricing measures to counter higher costs. It gained from higher pricing in the third quarter of 2022, driven by contractual price changes.
The company also remains focused on boosting its cash flows and returning value to shareholders. Its cash provided by operating activities was $301 million for the third quarter. The company repurchased $79 million of common stock during the quarter, resulting in total share repurchases of $351 million as of Sep 30, 2022.
However, Chemours is exposed to headwinds from global logistics and supply-chain issues. It is being challenged by raw material cost inflation due to supply constraints. Supply-chain challenges and raw material availability issues are likely to continue moving ahead. Headwinds from raw material, logistics and energy costs are likely to persist in the remainder of 2022.
The company’s Titanium Technologies unit also faces challenges from ore supply issues. The division is also facing volume pressure due to weaker demand amid macroeconomic uncertainties. Volumes in this unit fell 16% year over year in the third quarter, hurt by lower demand, especially in Europe and Asia. Demand weakness in this segment is likely to continue in the fourth quarter.
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Olympic Steel, Inc. (ZEUS - Free Report) and Commercial Metals Company (CMC - Free Report) .
Sociedad has a projected earnings growth rate of 520% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 1.9% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 56% in a year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel currently carries a Zacks Rank #1. The consensus estimate for ZEUS's current-year earnings has been revised 4.8% upward in the past 60 days.
Olympic Steel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 25.4%, on average. ZEUS has rallied around 67% in a year.
Commercial Metals currently carries a Zacks Rank #1. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 13.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 55% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Chemours (CC) Gains on Opteon Demand Amid Input Cost Woes
The Chemours Company (CC - Free Report) is benefiting from higher demand for its Opteon refrigerants, strong execution, higher pricing and cost-cutting measures amid headwinds from raw material cost inflation.
The company’s shares are up 4.4% over a year, compared with a 0.9% rise recorded by its industry.
Image Source: Zacks Investment Research
Chemours is gaining from higher Opteon adoption, strong execution and its cost-reduction and pricing actions. The company’s Thermal & Specialized Solutions segment is benefiting from strong demand in refrigerants across most regions. It is also witnessing strong adoption of the Opteon platform, which is supporting volumes in this segment. Chemours remains committed toward driving Opteon adoption.
Chemours is also gaining from its efforts to reduce costs. Its cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support its margins in 2022. The company is taking actions to reduce fixed costs in the Titanium Technologies division. It is also taking appropriate pricing measures to counter higher costs. It gained from higher pricing in the third quarter of 2022, driven by contractual price changes.
The company also remains focused on boosting its cash flows and returning value to shareholders. Its cash provided by operating activities was $301 million for the third quarter. The company repurchased $79 million of common stock during the quarter, resulting in total share repurchases of $351 million as of Sep 30, 2022.
However, Chemours is exposed to headwinds from global logistics and supply-chain issues. It is being challenged by raw material cost inflation due to supply constraints. Supply-chain challenges and raw material availability issues are likely to continue moving ahead. Headwinds from raw material, logistics and energy costs are likely to persist in the remainder of 2022.
The company’s Titanium Technologies unit also faces challenges from ore supply issues. The division is also facing volume pressure due to weaker demand amid macroeconomic uncertainties. Volumes in this unit fell 16% year over year in the third quarter, hurt by lower demand, especially in Europe and Asia. Demand weakness in this segment is likely to continue in the fourth quarter.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Zacks Rank & Key Picks
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Olympic Steel, Inc. (ZEUS - Free Report) and Commercial Metals Company (CMC - Free Report) .
Sociedad has a projected earnings growth rate of 520% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 1.9% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 56% in a year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel currently carries a Zacks Rank #1. The consensus estimate for ZEUS's current-year earnings has been revised 4.8% upward in the past 60 days.
Olympic Steel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 25.4%, on average. ZEUS has rallied around 67% in a year.
Commercial Metals currently carries a Zacks Rank #1. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 13.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 55% in a year.