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Chemours (CC) Scales 52-Week High: What's Driving the Stock?
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The Chemours Company (CC - Free Report) shares touched a fresh 52-week high of $38.84 on Jul 12, before closing at $38.32.
In the past year, CC has gained 21.1% compared with the industry’s 15.8% rise in the same period.
Image Source: Zacks Investment Research
Opteon Adoption, Cost Reductions Drive Growth
Chemours is experiencing significant benefits from effective execution, cost-reduction initiatives and strategic pricing actions. One particular area of strength is its Thermal & Specialized Solutions segment, which is witnessing robust demand for refrigerants. The adoption of the Opteon platform has been strong, resulting in a 10% increase in volumes in the first quarter of 2023.
Chemours remains dedicated to driving Opteon adoption, which is bolstering sales in this segment. Furthermore, higher prices in the Thermal & Specialized Solutions segment and the Titanium Technologies division are contributing to revenue growth.
The company's focus on cost reduction is yielding positive results. Its comprehensive cost-reduction program, coupled with productivity enhancements and operational improvements across its various businesses, is expected to support margin expansion throughout 2023. Chemours is also implementing strategic pricing measures to offset the impact of raw material cost inflation.
Furthermore, in June, Chemours, DuPont and Corteva reached an agreement in principle to settle all PFAS-related drinking water claims made by public water systems serving the majority of the U.S. population. The companies have agreed to set up a settlement fund of $1.185 billion, with Chemours contributing 50% and DuPont and Corteva collectively contributing the remaining 50%. This settlement has alleviated concerns surrounding Chemours' stock and resolved a significant issue for the company.
The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 3.7% upward in the past 60 days. ATI beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 13%. The company’s shares have rallied 99.9% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 6.3% upward in the past 90 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average earnings surprise being 6.8%. The company’s shares have gained 31% in the past year.
The Zacks Consensus Estimate for APD’s current-year earnings has been revised 0.3% upward in the past 60 days. Air Products beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.3% on average. The company’s shares have risen roughly 29.1% in the past year.
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Chemours (CC) Scales 52-Week High: What's Driving the Stock?
The Chemours Company (CC - Free Report) shares touched a fresh 52-week high of $38.84 on Jul 12, before closing at $38.32.
In the past year, CC has gained 21.1% compared with the industry’s 15.8% rise in the same period.
Image Source: Zacks Investment Research
Opteon Adoption, Cost Reductions Drive Growth
Chemours is experiencing significant benefits from effective execution, cost-reduction initiatives and strategic pricing actions. One particular area of strength is its Thermal & Specialized Solutions segment, which is witnessing robust demand for refrigerants. The adoption of the Opteon platform has been strong, resulting in a 10% increase in volumes in the first quarter of 2023.
Chemours remains dedicated to driving Opteon adoption, which is bolstering sales in this segment. Furthermore, higher prices in the Thermal & Specialized Solutions segment and the Titanium Technologies division are contributing to revenue growth.
The company's focus on cost reduction is yielding positive results. Its comprehensive cost-reduction program, coupled with productivity enhancements and operational improvements across its various businesses, is expected to support margin expansion throughout 2023. Chemours is also implementing strategic pricing measures to offset the impact of raw material cost inflation.
Furthermore, in June, Chemours, DuPont and Corteva reached an agreement in principle to settle all PFAS-related drinking water claims made by public water systems serving the majority of the U.S. population. The companies have agreed to set up a settlement fund of $1.185 billion, with Chemours contributing 50% and DuPont and Corteva collectively contributing the remaining 50%. This settlement has alleviated concerns surrounding Chemours' stock and resolved a significant issue for the company.
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).
Some better-ranked stocks in the basic materials space include ATI Inc. (ATI - Free Report) and PPG Industries, Inc. (PPG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Air Products and Chemicals, Inc. (APD - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 3.7% upward in the past 60 days. ATI beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 13%. The company’s shares have rallied 99.9% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 6.3% upward in the past 90 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average earnings surprise being 6.8%. The company’s shares have gained 31% in the past year.
The Zacks Consensus Estimate for APD’s current-year earnings has been revised 0.3% upward in the past 60 days. Air Products beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.3% on average. The company’s shares have risen roughly 29.1% in the past year.