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FMC Shares Up 10% in 3 Months: What's Driving the Stock?
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Shares of FMC Corporation (FMC - Free Report) have gained 10.4% over the past three months. The company has also outperformed its industry’s decline of 1.6% over the same time frame. It has also topped the S&P 500’s roughly 9.7% rise over the same period.
Let’s take a look into the factors that are driving this Zacks Rank #3 (Hold) stock.
Image Source: Zacks Investment Research
What’s Going in FMC’s Favor?
FMC is benefiting from its efforts to expand product portfolio, boost market position and its cost-reduction actions amid headwinds, including soft demand conditions.
The company remains focused on strengthening its product portfolio. It is investing in technologies as well as new product launches to enhance value to the farmers. New products launched in Europe, North America and Asia are gaining significant traction. FMC generated $590 million in sales in 2023 from new products launched in the past five years. Sales of products launched in the last five years accounted for 14% of total revenues in the fourth quarter of 2023.
Product introductions are expected to continue to support the company’s results this year. FMC expects revenues from new products to grow by roughly $200 million in 2024. Nearly half of the growth is expected to come from new product introductions in 2024.
The company is also expected to benefit from reduced input costs, lower interest expenses, favorable product mix and its cost-control actions. FMC benefited from lower input costs and diligent control in SG&A and R&D spending in the fourth quarter. It also expects its restructuring actions, which include indirect spending cuts and workforce reductions, to result in $50-$75 million of cost savings in 2024. These actions are likely to contribute to its EBITDA growth.
Moreover, the acquisition of BioPhero ApS, a Denmark-based pheromone research and production company, adds biologically produced state-of-the-art pheromone insect control technology to the company’s product portfolio and R&D pipeline, highlighting FMC's role as a leader in delivering innovative and sustainable crop protection solutions.
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Denison Mines Corp. (DNN - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The Zacks Consensus Estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 57% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines carries a Zacks Rank #1. DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared roughly 76% in the past year.
The Zacks Consensus Estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 78% in the past year.
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FMC Shares Up 10% in 3 Months: What's Driving the Stock?
Shares of FMC Corporation (FMC - Free Report) have gained 10.4% over the past three months. The company has also outperformed its industry’s decline of 1.6% over the same time frame. It has also topped the S&P 500’s roughly 9.7% rise over the same period.
Let’s take a look into the factors that are driving this Zacks Rank #3 (Hold) stock.
Image Source: Zacks Investment Research
What’s Going in FMC’s Favor?
FMC is benefiting from its efforts to expand product portfolio, boost market position and its cost-reduction actions amid headwinds, including soft demand conditions.
The company remains focused on strengthening its product portfolio. It is investing in technologies as well as new product launches to enhance value to the farmers. New products launched in Europe, North America and Asia are gaining significant traction. FMC generated $590 million in sales in 2023 from new products launched in the past five years. Sales of products launched in the last five years accounted for 14% of total revenues in the fourth quarter of 2023.
Product introductions are expected to continue to support the company’s results this year. FMC expects revenues from new products to grow by roughly $200 million in 2024. Nearly half of the growth is expected to come from new product introductions in 2024.
The company is also expected to benefit from reduced input costs, lower interest expenses, favorable product mix and its cost-control actions. FMC benefited from lower input costs and diligent control in SG&A and R&D spending in the fourth quarter. It also expects its restructuring actions, which include indirect spending cuts and workforce reductions, to result in $50-$75 million of cost savings in 2024. These actions are likely to contribute to its EBITDA growth.
Moreover, the acquisition of BioPhero ApS, a Denmark-based pheromone research and production company, adds biologically produced state-of-the-art pheromone insect control technology to the company’s product portfolio and R&D pipeline, highlighting FMC's role as a leader in delivering innovative and sustainable crop protection solutions.
FMC Corporation Price and Consensus
FMC Corporation price-consensus-chart | FMC Corporation Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Denison Mines Corp. (DNN - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The Zacks Consensus Estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 57% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines carries a Zacks Rank #1. DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared roughly 76% in the past year.
The Zacks Consensus Estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 78% in the past year.