Zacks Investment Research upgraded Valhi, Inc. (VHI) to a Zacks Rank #1 (Strong Buy) on Sep 24, 2014. Going by the Zacks model, companies holding a Zacks Rank #1 have strong chances of performing better than the broader market.
Why the Upgrade?
Valhi, Inc. is making earnest efforts to recover from losses incurred in the first three quarters of 2013. After reporting break-even results in first-quarter 2014, the company reported earnings of 5 cents per share in the second quarter. The bottom line improved significantly over 12 cents loss per share recorded in the year-ago quarter. It also surpassed the Zacks Consensus Estimate of 3 cents.
Revenues decreased 4.7% year over year due to weak sales in the Chemicals segment. The top-line decline was more-than-offset by a 22.3% drop in cost of sales and a 9.8% fall in selling, general and administrative expenses.
Impressive second-quarter 2014 results have rekindled hopes for better performances in the quarters ahead. Valhi, Inc’s share price has gained 2.8% since the results were announced on Aug 8. Also, over the last 60 days, the Zacks Consensus Estimate has increased 50% to 15 cents per share for 2014 and 20% to 30 cents per share for 2015.
Other Stocks to Consider
Valhi, Inc. presently has a market capitalization of $2.3 billion. Some other stocks worth considering in the chemical-diversified industry include LyondellBasell Industries N.V. (LYB), PPG Industries Inc. (PPG) and Akzo Nobel NV (AKZOY). While LyondellBasell Industries sports a Zacks Rank #1, both PPG Industries and Akzo Nobel carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment