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 individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Hold Onto Ashland (ASH) Stock for Now
Read MoreHide Full Article
Ashland Inc. (ASH - Free Report) is gaining from strong demand across its end markets and disciplined pricing actions amid headwinds from input cost inflation.
The company’s shares are up 2.3% over a year, compared with a 31.2% decline recorded by its industry.
Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
Image Source: Zacks Investment Research
What’s Aiding ASH?
Ashland’s restructuring actions have provided it with a profitable, high-margin portfolio focused on high-quality markets and better positioned it for future growth. It is benefiting from solid demand in most consumer end markets. Its industrial businesses are witnessing strong demand recovery. Ashland is seeing higher demand across core personal-care end markets. The company is also gaining from the contributions from the Schulke & Mayr acquisition.
The company is also taking a number of actions including reduction of operating costs to boost profitability. Cost-reduction measures are expected to support its margins in fiscal 2023. The company’s pricing measures are also contributing to its top line growth. Its pricing and mix improvement actions are expected to cover the current inflation.
Ashland also remains committed to boosting its cash flows and returning value to shareholders. The company remains focused on expanding margins and improving free cash flow conversion. It generated cash flows from operating activities of $179 million in the last reported quarter, up around 19% year over year. The company, in May 2022, raised its quarterly cash dividend by 12% to 33.5 cents per share. Its board also authorized a new, evergreen $500-million common stock repurchase program.
A Few Headwinds
The company faces challenges from availability of raw materials. It is seeing a significant inflation in raw material and energy costs. Raw material and supply chain tightness are expected to continue in the short haul.
Ashland is also exposed to headwinds from global logistics and shipping constraints. It witnessed higher freight and logistics costs in fiscal 2022. The supply chain and logistics challenges are expected to persist over the near term. This might result in higher costs and weigh on the company’s margins. Pandemic-related lockdowns in China and the impact of the Russia-Ukraine conflict are other concerns.
Better-ranked stocks worth considering in the basic materials space include Olympic Steel, Inc. (ZEUS - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Commercial Metals Company (CMC - Free Report) .
Olympic Steel currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for ZEUS's current-year earnings has been revised 4.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 45% in a year.
Sociedad has a projected earnings growth rate of 540.5% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 1.5% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 37.4%. SQM has rallied roughly 73% in a year. The company currently carries a Zacks Rank #1.
Commercial Metals currently carries a Zacks Rank #2 (Buy). The consensus estimate for CMC's current-year earnings has been revised 8.7% 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 40% in a year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Hold Onto Ashland (ASH) Stock for Now
Ashland Inc. (ASH - Free Report) is gaining from strong demand across its end markets and disciplined pricing actions amid headwinds from input cost inflation.
The company’s shares are up 2.3% over a year, compared with a 31.2% decline recorded by its industry.
Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
Image Source: Zacks Investment Research
What’s Aiding ASH?
Ashland’s restructuring actions have provided it with a profitable, high-margin portfolio focused on high-quality markets and better positioned it for future growth. It is benefiting from solid demand in most consumer end markets. Its industrial businesses are witnessing strong demand recovery. Ashland is seeing higher demand across core personal-care end markets. The company is also gaining from the contributions from the Schulke & Mayr acquisition.
The company is also taking a number of actions including reduction of operating costs to boost profitability. Cost-reduction measures are expected to support its margins in fiscal 2023. The company’s pricing measures are also contributing to its top line growth. Its pricing and mix improvement actions are expected to cover the current inflation.
Ashland also remains committed to boosting its cash flows and returning value to shareholders. The company remains focused on expanding margins and improving free cash flow conversion. It generated cash flows from operating activities of $179 million in the last reported quarter, up around 19% year over year. The company, in May 2022, raised its quarterly cash dividend by 12% to 33.5 cents per share. Its board also authorized a new, evergreen $500-million common stock repurchase program.
A Few Headwinds
The company faces challenges from availability of raw materials. It is seeing a significant inflation in raw material and energy costs. Raw material and supply chain tightness are expected to continue in the short haul.
Ashland is also exposed to headwinds from global logistics and shipping constraints. It witnessed higher freight and logistics costs in fiscal 2022. The supply chain and logistics challenges are expected to persist over the near term. This might result in higher costs and weigh on the company’s margins. Pandemic-related lockdowns in China and the impact of the Russia-Ukraine conflict are other concerns.
Ashland Inc. Price and Consensus
Ashland Inc. price-consensus-chart | Ashland Inc. Quote
Stocks to Consider
Better-ranked stocks worth considering in the basic materials space include Olympic Steel, Inc. (ZEUS - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Commercial Metals Company (CMC - Free Report) .
Olympic Steel currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for ZEUS's current-year earnings has been revised 4.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 45% in a year.
Sociedad has a projected earnings growth rate of 540.5% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 1.5% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 37.4%. SQM has rallied roughly 73% in a year. The company currently carries a Zacks Rank #1.
Commercial Metals currently carries a Zacks Rank #2 (Buy). The consensus estimate for CMC's current-year earnings has been revised 8.7% 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 40% in a year.