Zacks Investment Research downgraded Ashland Global Holdings Inc. (ASH - Free Report) to a Zacks Rank #5 (Strong Sell) on Nov 17, 2016. Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market over the next few quarters.
Why the Downgrade?
Market sentiments have been weak for Ashland Global Holdings as the company reported lower-than-expected results for fourth-quarter fiscal 2016 (ended Sep 2016). Since the results release on Nov 8, the company’s share price has declined roughly 4.9%.
In the last reported quarter, Ashland Global Holdings’ earnings came in at $1.52 per share, below the Zacks Consensus Estimate of $1.62. Its revenues declined 2.5% year over year while operating loss increased 44.6%.
Over the last 30 days, the Zacks Consensus Estimate for Ashland Global Holdings has decreased 13.8% to $6.33 per share for fiscal 2017 and 13.5% to $7.20 per share for fiscal 2018. Also, the earnings estimate for first-quarter fiscal 2017 declined 5.9% to $1.28.
Further, Ashland Global Holdings currently has an Earnings ESP of -7.90% for fiscal 2017 and -23.47% for fiscal 2018. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ashland Global Holdings currently has a market capitalization of $6.8 billion.
Stocks to Consider
Better-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) . All these stocks sport a Zacks Rank #1 (Strong Buy). 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.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>