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Univar (UNVR) Soars 12.0%: Is Further Upside Left in the Stock?
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Univar shares rallied 12% in the last trading session to close at $34.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9% loss over the past four weeks.
UNVR’s stock popped as it entered into a definitive agreement to be acquired by Apollo Funds in an all-cash transaction worth roughly $8.1 billion. Under the deal, the shareholders of Univar will receive $36.15 per share in cash, representing a 20.6% premium to its undisturbed closing stock price as of Nov 22, 2022. The deal, which has been approved by Univar’s board, is expected to close in second-half 2023, subject to customary closing conditions.
This specialty chemicals company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -42.1%. Revenues are expected to be $2.48 billion, down 13.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Univar, the consensus EPS estimate for the quarter has been revised 21.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on UNVR going forward to see if this recent jump can turn into more strength down the road.
Univar is part of the Zacks Chemical - Diversified industry. Avient (AVNT - Free Report) , another stock in the same industry, closed the last trading session 3.4% higher at $39.92. AVNT has returned -0.8% in the past month.
For Avient, the consensus EPS estimate for the upcoming report has changed +3.9% over the past month to $0.56. This represents a change of -43.4% from what the company reported a year ago. Avient currently has a Zacks Rank of #3 (Hold).
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Univar (UNVR) Soars 12.0%: Is Further Upside Left in the Stock?
Univar shares rallied 12% in the last trading session to close at $34.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9% loss over the past four weeks.
UNVR’s stock popped as it entered into a definitive agreement to be acquired by Apollo Funds in an all-cash transaction worth roughly $8.1 billion. Under the deal, the shareholders of Univar will receive $36.15 per share in cash, representing a 20.6% premium to its undisturbed closing stock price as of Nov 22, 2022. The deal, which has been approved by Univar’s board, is expected to close in second-half 2023, subject to customary closing conditions.
This specialty chemicals company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -42.1%. Revenues are expected to be $2.48 billion, down 13.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Univar, the consensus EPS estimate for the quarter has been revised 21.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on UNVR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Univar is part of the Zacks Chemical - Diversified industry. Avient (AVNT - Free Report) , another stock in the same industry, closed the last trading session 3.4% higher at $39.92. AVNT has returned -0.8% in the past month.
For Avient, the consensus EPS estimate for the upcoming report has changed +3.9% over the past month to $0.56. This represents a change of -43.4% from what the company reported a year ago. Avient currently has a Zacks Rank of #3 (Hold).