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Here's Why You Should Buy Innospec (IOSP) Stock Right Now
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Innospec Inc. (IOSP - Free Report) experienced a 16.4% increase in its stock value in the past six months, driven by the strength of its Oilfield Services unit and strategic growth initiatives.
The stock offers an attractive investment opportunity with strong growth prospects, as reflected in its Zacks Rank #2 (Buy).
Positive Earnings Surprise History
Innospec outperformed the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter average earnings surprise of 10.54%.
Healthy Growth Potential
The 2024 Zacks Consensus Estimate for earnings is pegged at $6.72, indicating a 10.3% increase from the previous year’s levels. Earnings are likely to increase 9.8% in 2025.
Estimates Northbound
The Zacks Consensus Estimate for Innospec for 2024 has increased by around 1.8% in the past two months.
An Outperformer
Innospec’s sharesare up 24.6% in the past year against the industry’s fall of 3.1% in the same period.
Image Source: Zacks Investment Research
What’s Driving Innospec?
In the fourth quarter, IOSP reported adjusted earnings per share of $1.84, up from $1.20 per share in the prior-year quarter and surpassing the Zacks Consensus Estimate of $1.59. Despite a 3% year-over-year decline in revenues to $494.7 million, Innospec outperformed the Zacks Consensus Estimate of $474 million. The Oilfield Services unit maintained its robust performance, while the Performance Chemicals and Fuel Specialties segments achieved double-digit growth in operating income and expanded margins.
Innospec's recent acquisition of QGP Quimica Geral in Brazil marks a significant expansion of its global footprint, bolstering manufacturing capabilities and customer service in South America. QGP's specialized expertise in key areas such as Agriculture aligns seamlessly with Innospec's existing portfolio, particularly in burgeoning markets. This strategic move underscores Innospec's commitment to its M&A strategy, fortifying its Performance Chemicals segment while establishing a manufacturing stronghold in South America. Notably, the acquisition leaves Innospec with a debt-free balance sheet, setting the stage for future M&A endeavors, shareholder returns and targeted organic growth investments.
Despite looming economic challenges, Innospec remains optimistic for 2024, citing a robust pipeline of technology-driven organic opportunities and the integration of QGP as catalysts for growth. Expansion in production capacity is anticipated to unlock further potential, with new contracts in personal care bolstering the Performance Chemicals division. At the same time, advancements in technologies offer promising prospects for the Fuel Specialties unit.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 57.2% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 41.4% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 77.7% in the past year.
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Here's Why You Should Buy Innospec (IOSP) Stock Right Now
Innospec Inc. (IOSP - Free Report) experienced a 16.4% increase in its stock value in the past six months, driven by the strength of its Oilfield Services unit and strategic growth initiatives.
Innospec Inc. Price and Consensus
Innospec Inc. price-consensus-chart | Innospec Inc. Quote
The stock offers an attractive investment opportunity with strong growth prospects, as reflected in its Zacks Rank #2 (Buy).
Positive Earnings Surprise History
Innospec outperformed the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter average earnings surprise of 10.54%.
Healthy Growth Potential
The 2024 Zacks Consensus Estimate for earnings is pegged at $6.72, indicating a 10.3% increase from the previous year’s levels. Earnings are likely to increase 9.8% in 2025.
Estimates Northbound
The Zacks Consensus Estimate for Innospec for 2024 has increased by around 1.8% in the past two months.
An Outperformer
Innospec’s sharesare up 24.6% in the past year against the industry’s fall of 3.1% in the same period.
Image Source: Zacks Investment Research
What’s Driving Innospec?
In the fourth quarter, IOSP reported adjusted earnings per share of $1.84, up from $1.20 per share in the prior-year quarter and surpassing the Zacks Consensus Estimate of $1.59. Despite a 3% year-over-year decline in revenues to $494.7 million, Innospec outperformed the Zacks Consensus Estimate of $474 million. The Oilfield Services unit maintained its robust performance, while the Performance Chemicals and Fuel Specialties segments achieved double-digit growth in operating income and expanded margins.
Innospec's recent acquisition of QGP Quimica Geral in Brazil marks a significant expansion of its global footprint, bolstering manufacturing capabilities and customer service in South America. QGP's specialized expertise in key areas such as Agriculture aligns seamlessly with Innospec's existing portfolio, particularly in burgeoning markets. This strategic move underscores Innospec's commitment to its M&A strategy, fortifying its Performance Chemicals segment while establishing a manufacturing stronghold in South America. Notably, the acquisition leaves Innospec with a debt-free balance sheet, setting the stage for future M&A endeavors, shareholder returns and targeted organic growth investments.
Despite looming economic challenges, Innospec remains optimistic for 2024, citing a robust pipeline of technology-driven organic opportunities and the integration of QGP as catalysts for growth. Expansion in production capacity is anticipated to unlock further potential, with new contracts in personal care bolstering the Performance Chemicals division. At the same time, advancements in technologies offer promising prospects for the Fuel Specialties unit.
Stocks to Consider
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) and Ecolab Inc. (ECL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Hawkins, Inc. (HWKN - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 57.2% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 41.4% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 77.7% in the past year.