Shares of Koppers Holdings Inc. (KOP - Free Report) reached a new 52-week high of $38.25 on Nov 16, 2016 before closing the trading session slightly lower at $37.85. This apex improved upon the last 52-week high of $37.60 touched on Nov 14.
As of Nov 16, the stock yielded a solid year-to-date return of 107.4%. The trading volume for the session was 0.15 million shares. Earnings estimate revisions for 2016 and 2017, along with an expected earnings growth rate of 10% for the next five years, indicate Koppers Holdings’ potential for further price appreciation.
Market sentiments have been positive toward Koppers Holdings, with its share price rising roughly 13.2%, since it reported better-than-expected results for third-quarter 2016 on Nov 3. The company’s earnings of 99 cents per share exceeded the Zacks Consensus Estimate of 66 cents by 50% and the year-ago tally by 47.8%.
Koppers Holdings raised its adjusted earnings guidance for 2016 to $2.40−$2.54 per share from the previous projection of $1.90−$2.20. Sales for the year are projected to be approximately $1.4 billion. Adjusted earnings before interest, tax, depreciation and amortization are likely to range from $168−$172 million compared with $162−$172 million predicted earlier.
Also, new contract wins and expansion play an important role in determining Koppers Holdings’ revenue generation. In October, the company announced an extended contract (now to mature on 2021) with Norfolk Southern Railway Company.
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for Koppers Holdings grew 15.6% to $2.45 for 2016 and 8.1% to $2.81 for 2017. In addition, the earnings estimates for 2016 and 2017 represent year-over-year growth of 62.4% and 14.6%, respectively.
With a market capitalization of $782.1 million, Koppers Holdings currently sports a Zacks Rank #1 (Strong Buy). Other similarly-ranked stocks in the chemical industry include The Chemours Company (CC - Free Report) , FMC Corp. (FMC - Free Report) and Innophos Holdings Inc. (IPHS - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
The Chemours Company has an average positive earnings surprise of 153.83% in the last four quarters. Also, the earnings estimates for 2016 and 2017 have been revised upward over the past 60 days.
FMC Corp’s earnings estimates for 2016 and 2017 have been revised upward in the last 60 days. The average earnings surprise for the last four quarters was a positive 13.07%.
Innophos Holdings reported better-than-expected results in the last quarter, with a positive earnings surprise of 13.64%. Also, earnings expectations for 2016 and 2017 have improved over the past 60 days.
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