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Celanese (CE) Hits 52-Week High: What's Driving the Stock?
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Shares of Celanese Corporation (CE - Free Report) touched a fresh 52-week high of $83.47 on Dec 8, eventually closing a bit lower at $83.21.
Celanese has a market cap of roughly $11.9 billion and average volume of shares traded in the last three months is around 945.5K. The company has a long-term expected EPS growth of 8.75%.
Driving Factors
Celanese’s adjusted earnings for third-quarter 2016 topped the Zacks Consensus Estimate. The company’s advanced engineered materials business posted a third-quarter record operating profit and delivered the highest ever quarterly adjusted earnings before interest and tax (EBIT).
The company expects its adjusted earnings to rise in the range of 8–10% in 2016 on the back of productivity actions and operational improvement. It remains on track to achieve around $100 million of productivity benefits on a year-over-year basis in 2016 and has identified incremental productivity opportunities of another $100 million for 2017.
Celanese’s price has gained 32.6% in the past three months, outperforming the Zacks categorized Chemical industry’s gain of 4.04% over the same period.
Celanese’s strategic measures including productivity and efficiency improvement actions should lend support to its earnings in 2016. Further, the company is likely to benefit from capacity expansion and growth initiatives in emerging regions, including Asia.
Recently, Celanese wrapped up its acquisition of Forli, Italy-based SO.F.TER. Group, one of the largest independent thermoplastics compounders in the world with operations in Italy, Mexico, Brazil and the U.S. The buyout nearly doubles the number of Celanese global engineered materials platforms. Moreover, it expands the company’s solutions capability and project pipeline. SO.F.TER. Group’s modern manufacturing facilities and product portfolio is also likely to offer opportunities for additional growth, investment and synergies.
Celanese is looking to expand and grow its engineered materials pipeline in 2017 and launch multiple new projects in the engineered materials space leveraging the capabilities added through the SO.F.TER. buyout.
The company also continues to generate strong cash flows and remains focused on returning value to its shareholders. Celanese returned $152 million of cash to its shareholders in third-quarter 2016. It bought back 1.5 million shares and paid more than $50 million in dividends in the quarter.
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Celanese (CE) Hits 52-Week High: What's Driving the Stock?
Shares of Celanese Corporation (CE - Free Report) touched a fresh 52-week high of $83.47 on Dec 8, eventually closing a bit lower at $83.21.
Celanese has a market cap of roughly $11.9 billion and average volume of shares traded in the last three months is around 945.5K. The company has a long-term expected EPS growth of 8.75%.
Driving Factors
Celanese’s adjusted earnings for third-quarter 2016 topped the Zacks Consensus Estimate. The company’s advanced engineered materials business posted a third-quarter record operating profit and delivered the highest ever quarterly adjusted earnings before interest and tax (EBIT).
The company expects its adjusted earnings to rise in the range of 8–10% in 2016 on the back of productivity actions and operational improvement. It remains on track to achieve around $100 million of productivity benefits on a year-over-year basis in 2016 and has identified incremental productivity opportunities of another $100 million for 2017.
Celanese’s price has gained 32.6% in the past three months, outperforming the Zacks categorized Chemical industry’s gain of 4.04% over the same period.
Celanese’s strategic measures including productivity and efficiency improvement actions should lend support to its earnings in 2016. Further, the company is likely to benefit from capacity expansion and growth initiatives in emerging regions, including Asia.
Recently, Celanese wrapped up its acquisition of Forli, Italy-based SO.F.TER. Group, one of the largest independent thermoplastics compounders in the world with operations in Italy, Mexico, Brazil and the U.S. The buyout nearly doubles the number of Celanese global engineered materials platforms. Moreover, it expands the company’s solutions capability and project pipeline. SO.F.TER. Group’s modern manufacturing facilities and product portfolio is also likely to offer opportunities for additional growth, investment and synergies.
Celanese is looking to expand and grow its engineered materials pipeline in 2017 and launch multiple new projects in the engineered materials space leveraging the capabilities added through the SO.F.TER. buyout.
The company also continues to generate strong cash flows and remains focused on returning value to its shareholders. Celanese returned $152 million of cash to its shareholders in third-quarter 2016. It bought back 1.5 million shares and paid more than $50 million in dividends in the quarter.
Other Stocks to Consider
Celanese is a Zacks Rank #2 (Buy) stock.
Other well-placed companies in the chemical space include Koppers Holdings Inc. (KOP - Free Report) , The Chemours Company (CC - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can the complete list of today’s Zacks #1 Rank stocks here.
Koppers Holdings has an expected long-term growth of 10%.
Chemours has an expected long-term growth of around 15.5%.
Kronos Worldwide has an expected long-term growth of around 5%.
CELANESE CP-A Price and Consensus
CELANESE CP-A Price and Consensus | CELANESE CP-A Quote
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>