Shares of FMC Corporation (FMC) reached a new 52-week high of $78.42 on Mar 6, eclipsing its previous high of $78.33. The stock pulled back to close the day at $78.08.
The Pennsylvania-based chemical company, which has a market cap of $10.4 billion, has seen its shares shoot up roughly 29% over a year. Average volume of shares traded over the last three months is around 904.9K.
What’s Driving FMC Up?
Shares of FMC Corp. are heading higher following its handy earnings beat in fourth-quarter 2013, reported on Feb 5. Its adjusted earnings of $1.05 per share for the quarter topped the Zacks Consensus Estimate by a dime. Revenues jumped roughly 24% year over year to $1,130.7 million and beat the Zacks Consensus Estimate of $1,046 million. Growth was witnessed across the board in the quarter, led by the company’s core Agricultural Solutions division.
FMC Corp., a Zacks Rank #3 (Hold) stock, is well placed to meet or exceed its targets for “Vision 2015, a road map for future. Recent acquisitions and development agreements are adding strength to its agricultural business.
FMC Corp. expects above-market rate growth to continue for its Agricultural Solutions segment in 2014. It forecasts full-year segment earnings to increase by a mid-teens percentage over 2013 driven by favorable market conditions, continued market share gains and new product introductions.
FMC Corp. also expects growth from food and pharmaceutical ingredients, mainly in emerging markets, in 2014. The $345 million acquisition of Omega-3 fatty acid maker Epax has bolstered its Nutrition and Health division and expanded its presence in the high-growth nutraceutical market. The acquisition is a strategic move by FMC Corp. to strengthen its position in the functional ingredients for the food, nutraceutical and pharmaceutical markets.
Factoring in the contributions of the Omega-3 product line, FMC Corp. sees revenues from the Nutrition and Health segment to rise in mid-to-high-teens clip and segment earnings to increase by a mid-teens percentage year over year in 2014.
Other Stocks to Consider
Other companies in the chemical space worth considering are Northern Technologies International Corp. (NTIC), Methanex Corporation (MEOH) and The Dow Chemical Company (DOW). While both Northern Technologies and Methanex carry a Zacks Rank #1 (Strong Buy), Dow Chemical holds a Zacks Rank #2 (Buy).
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