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Axalta Voltatex Insulating Resins Used to Contain Coronavirus

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Axalta Coating Systems Ltd. (AXTA - Free Report) announced that it increased the supply of Voltatex electrical insulating resins to ensure that customers are well-prepared to manufacture life-saving equipment during the coronavirus pandemic.

Notably, the equipment includes N95 facemasks and critical ventilators, which are in high demand worldwide.

Per management, Voltatex products maintain the highest quality requirements and minimize the weight of electric motors by more than 15%. Also, it can be used in perhaps the most challenging applications, without the fear of interruption.

Moreover, the Voltatex brand offers an extensive line of electrical insulation products such as wire enamels, impregnating resins and core sheet varnishes geared to operate together to enhance efficiencies.

Voltatex coatings are applied to ventilator motors, low-power servo motors and superconductors to help minimize energy demand and lower emissions.

Axalta’s shares have moved down 21.4% over a year, underperforming the 32.1% decline of the industry it belongs to.

 

 

On the fourth-quarter earnings call, the company stated that its major goals for 2020 include business wins in key markets, the execution of ongoing margin recovery, and the optimization of its financial returns through disciplined capital allocation and strong free cash flow generation. It also expects mixed demand across its end-markets in 2020.

Axalta expects adjusted earnings of $1.85-$2.00 per share for 2020. Net sales growth —excluding currency, and mergers and acquisitions — is forecast to be 1-2% for the year. The company also expects free cash flow of $450-$490 million for 2020.

Axalta Coating Systems Ltd. Price and Consensus

 

Zacks Rank & Stocks to Consider

Axalta currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Franco-Nevada Corporation (FNV - Free Report) .

Kinross has a projected earnings growth rate of 50% for 2020. The company’s shares have surged 121.6% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Barrick Gold sports a Zacks Rank #1 at present and has a projected earnings growth rate of 60.8% for 2020. The company’s shares have gained 114% in a year.

Franco-Nevada has a projected earnings growth rate of 19.2% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 93.4% in a year.

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