We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Celanese (CE) Shares Up 36% YTD: What's Behind the Rally?
Read MoreHide Full Article
Shares of Celanese Corporation (CE - Free Report) have surged 35.7% so far this year. The leading chemical and specialty materials maker has also handily outperformed its industry’s rise of 15.2% over the same time frame. Moreover, it has outpaced the S&P 500’s rise of around 24% year to date.
Celanese has a market cap of roughly $14.8 billion and average volume of shares traded in the last three months was around 767.3K. The company has an expected long-term earnings per share growth rate of 7.1%.
Let’s take a look into the factors that are driving this Zacks Rank #3 (Hold) stock.
What's Going in CE’s Favor?
Better-than-expected earnings performance in the first three quarters of 2019 and upbeat business prospects have contributed to the run-up in Celanese’s shares. Celanese is gaining from its inorganic growth actions, productivity measures and growth investments in organic projects amid a challenging environment. The company remains focused on strengthening its businesses by executing its productivity programs and strategically investing in high-return projects.
Celanese’s strategic measures including cost savings through productivity initiatives, price increase actions and efficiency enhancement are expected to support its earnings in 2019. The company is committed to execute its productivity programs that include implementation of a number of cost reduction capital projects.
Acquisitions are also providing Celanese with opportunities for additional growth and synergies. The acquisitions of SO.F.TER., Nilit and Omni Plastics are expected to significantly contribute to earnings expansion in the company's Engineered Materials (EM) segment.
The EM unit is also poised to benefit from new business wins and significant project commercialization. The company commercialized 1,315 projects during the third quarter, which contributed to its volume growth on a sequential comparison basis. It is on track to commercialize more than 4,000 projects in 2019.
Moreover, Celanese is rewarding its shareholders with dividends and share buybacks, leveraging solid free cash flow generation. The company generated operating cash flow of $397 million and free cash flow of $315 million during the third quarter. It returned $352 million to shareholders through dividends and share repurchases during the quarter. Celanese has already returned $1 billion to shareholders this year.
Some better-ranked stocks worth considering in the basic materials space include Kirkland Lake Gold Ltd. , Agnico Eagle Mines Limited (AEM - Free Report) and Franco-Nevada Corporation (FNV - Free Report) .
Kirkland Lake Gold has projected earnings growth rate of 97.1% for the current year and sports a Zacks Rank #1 (Strong Buy). The company’s shares have surged around 82% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agnico Eagle has a projected earnings growth rate of 168.6% for the current year and carries a Zacks Rank #2 (Buy). The company’s shares have rallied roughly 60% in a year’s time.
Franco-Nevada has estimated earnings growth rate of 46.2% for the current year and carries a Zacks Rank #2. The company’s shares have shot up roughly 38% in a year’s time.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Celanese (CE) Shares Up 36% YTD: What's Behind the Rally?
Shares of Celanese Corporation (CE - Free Report) have surged 35.7% so far this year. The leading chemical and specialty materials maker has also handily outperformed its industry’s rise of 15.2% over the same time frame. Moreover, it has outpaced the S&P 500’s rise of around 24% year to date.
Celanese has a market cap of roughly $14.8 billion and average volume of shares traded in the last three months was around 767.3K. The company has an expected long-term earnings per share growth rate of 7.1%.
Let’s take a look into the factors that are driving this Zacks Rank #3 (Hold) stock.
What's Going in CE’s Favor?
Better-than-expected earnings performance in the first three quarters of 2019 and upbeat business prospects have contributed to the run-up in Celanese’s shares. Celanese is gaining from its inorganic growth actions, productivity measures and growth investments in organic projects amid a challenging environment. The company remains focused on strengthening its businesses by executing its productivity programs and strategically investing in high-return projects.
Celanese’s strategic measures including cost savings through productivity initiatives, price increase actions and efficiency enhancement are expected to support its earnings in 2019. The company is committed to execute its productivity programs that include implementation of a number of cost reduction capital projects.
Acquisitions are also providing Celanese with opportunities for additional growth and synergies. The acquisitions of SO.F.TER., Nilit and Omni Plastics are expected to significantly contribute to earnings expansion in the company's Engineered Materials (EM) segment.
The EM unit is also poised to benefit from new business wins and significant project commercialization. The company commercialized 1,315 projects during the third quarter, which contributed to its volume growth on a sequential comparison basis. It is on track to commercialize more than 4,000 projects in 2019.
Moreover, Celanese is rewarding its shareholders with dividends and share buybacks, leveraging solid free cash flow generation. The company generated operating cash flow of $397 million and free cash flow of $315 million during the third quarter. It returned $352 million to shareholders through dividends and share repurchases during the quarter. Celanese has already returned $1 billion to shareholders this year.
Celanese Corporation Price and Consensus
Celanese Corporation price-consensus-chart | Celanese Corporation Quote
Stocks to Consider
Some better-ranked stocks worth considering in the basic materials space include Kirkland Lake Gold Ltd. , Agnico Eagle Mines Limited (AEM - Free Report) and Franco-Nevada Corporation (FNV - Free Report) .
Kirkland Lake Gold has projected earnings growth rate of 97.1% for the current year and sports a Zacks Rank #1 (Strong Buy). The company’s shares have surged around 82% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agnico Eagle has a projected earnings growth rate of 168.6% for the current year and carries a Zacks Rank #2 (Buy). The company’s shares have rallied roughly 60% in a year’s time.
Franco-Nevada has estimated earnings growth rate of 46.2% for the current year and carries a Zacks Rank #2. The company’s shares have shot up roughly 38% in a year’s time.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>