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Koppers (KOP) Shares Gain 20% YTD: What's Driving the Stock?
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Koppers Holdings Inc.’s (KOP - Free Report) shares have gained 19.6% year to date. The global provider of wood treatment chemicals, treated wood products and carbon compounds has also outperformed its industry’s decline of 1.1% over the same time frame. It has topped the S&P 500’s roughly 15.8% rise over the same period.
Image Source: Zacks Investment Research
Let’s dive into the factors behind this Zacks Rank #2 (Buy) stock’s price appreciation.
In the first quarter of 2023, Koppers recorded forecast-topping earnings due to strength in its Railroad and Utility Products and Services (RUPS) and Performance Chemicals units. Its adjusted earnings per share (EPS) of $1.12 for the quarter outperformed the Zacks Consensus Estimate of 76 cents. KOP also reported record quarterly revenues of $513.4 million, exceeding the Zacks Consensus Estimate of $474 million.
KOP reiterated its sales, adjusted EBITDA and adjusted EPS guidance for 2023, citing its better-than-expected first-quarter performance. It anticipates sales of around $2.1 billion for 2023, up from $1.98 billion in 2022. Adjusted EBITDA is expected to be roughly $250 million in 2023, a rise from $228.1 million a year earlier. In addition, the company anticipates adjusted EPS of approximately $4.40 for 2023, up from $4.14 in 2022.
The company benefits from pricing increase measures to offset growing raw material, transportation, and labor costs. Its RUPS and Performance Chemicals divisions generated record first-quarter sales due to price hikes. It has also seen substantial demand from the utility market in the United States, which is supporting profitability in the RUPS business. In addition, KOP is committed to generating significant cash flows and minimizing debt.
Koppers aims to drive improvements through the implementation of strategic initiatives and progress toward long-term financial objectives. It is also growing its business by introducing new products and expanding into new markets. Its network improvement program will also benefit the company.
Other top-ranked stocks in the Basic Materials space include Carpenter Technology Corporation (CRS - Free Report) , ATI Inc. (ATI - Free Report) and Linde (LIN - Free Report) .
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS’ earnings surpassed Zacks Consensus Estimate in all the last four quarters. It has delivered a trailing four-quarter earnings surprise of 30.9%, on average. The stock has rallied 105.1% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI, currently carrying a Zacks Rank #1, has surged 98.1% over the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 2.1% upward in the past 60 days. Its earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of 13%, on average.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.65% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 5.9%, on average. The stock has gained 33.2% over the past year.
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Koppers (KOP) Shares Gain 20% YTD: What's Driving the Stock?
Koppers Holdings Inc.’s (KOP - Free Report) shares have gained 19.6% year to date. The global provider of wood treatment chemicals, treated wood products and carbon compounds has also outperformed its industry’s decline of 1.1% over the same time frame. It has topped the S&P 500’s roughly 15.8% rise over the same period.
Image Source: Zacks Investment Research
Let’s dive into the factors behind this Zacks Rank #2 (Buy) stock’s price appreciation.
In the first quarter of 2023, Koppers recorded forecast-topping earnings due to strength in its Railroad and Utility Products and Services (RUPS) and Performance Chemicals units. Its adjusted earnings per share (EPS) of $1.12 for the quarter outperformed the Zacks Consensus Estimate of 76 cents. KOP also reported record quarterly revenues of $513.4 million, exceeding the Zacks Consensus Estimate of $474 million.
KOP reiterated its sales, adjusted EBITDA and adjusted EPS guidance for 2023, citing its better-than-expected first-quarter performance. It anticipates sales of around $2.1 billion for 2023, up from $1.98 billion in 2022. Adjusted EBITDA is expected to be roughly $250 million in 2023, a rise from $228.1 million a year earlier. In addition, the company anticipates adjusted EPS of approximately $4.40 for 2023, up from $4.14 in 2022.
The company benefits from pricing increase measures to offset growing raw material, transportation, and labor costs. Its RUPS and Performance Chemicals divisions generated record first-quarter sales due to price hikes. It has also seen substantial demand from the utility market in the United States, which is supporting profitability in the RUPS business. In addition, KOP is committed to generating significant cash flows and minimizing debt.
Koppers aims to drive improvements through the implementation of strategic initiatives and progress toward long-term financial objectives. It is also growing its business by introducing new products and expanding into new markets. Its network improvement program will also benefit the company.
Koppers Holdings Inc. Price and Consensus
Koppers Holdings Inc. price-consensus-chart | Koppers Holdings Inc. Quote
Other Stocks to Consider
Other top-ranked stocks in the Basic Materials space include Carpenter Technology Corporation (CRS - Free Report) , ATI Inc. (ATI - Free Report) and Linde (LIN - Free Report) .
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS’ earnings surpassed Zacks Consensus Estimate in all the last four quarters. It has delivered a trailing four-quarter earnings surprise of 30.9%, on average. The stock has rallied 105.1% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI, currently carrying a Zacks Rank #1, has surged 98.1% over the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 2.1% upward in the past 60 days. Its earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of 13%, on average.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.65% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 5.9%, on average. The stock has gained 33.2% over the past year.