The Chemours Company’s CC stock looks promising at the moment. The company’s shares have surged around 110.1% over a year. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Let’s delve deeper into the factors that make this chemical company an attractive investment option.
What Makes Chemours an Attractive Pick?
Robust Q3 Performance & Upbeat Outlook: Chemours’ adjusted earnings for the third quarter came in at $1.12 per share, which topped the Zacks Consensus Estimate of $1.01.
Net sales of $1,584 million increased 13.3% year over year and surpassed the Zacks Consensus Estimate of $1,571 million. The company recorded adjusted EBITDA of $381 million for the third quarter, up 42% year over year.
Chemours, during third-quarter earnings call, said that its successful implementation of Five Point Transformation Plan has provided it a solid foundation to build a future focused on growth. The company reiterated that it expects adjusted EBITDA to be between $1.3 billion and $1.4 billion for 2017, exceeding its original transformation plan goal. Chemours also expects to generate positive free cash flows on the back of robust operational performance.
Northbound Estimates: Annual estimates for Chemours have moved north over the past month, reflecting analysts’ confidence in the stock. Over this period, the Zacks Consensus Estimate for 2017 has increased by around 2.8% to $3.73 per share. The Zacks Consensus Estimate for 2018 has also moved up 2.6% over the same time frame to $5.13.
Share Price Movement: Chemours has significantly outperformed the industry it belongs to year to date. The company’s shares have jumped a whopping 134.1% over this period, compared with roughly 26.6% growth recorded by the industry.
Solid Rank & VGM Score: Chemours currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Superior Return on Equity (ROE): Chemours’ ROE of 116.8%, as compared with the industry average of 11.2%, manifests the company’s efficiency in utilizing shareholder’s funds.
Chemours Company (The) Price and Consensus
Chemours Company (The) Price and Consensus | Chemours Company (The) Quote
Other Stocks to Consider
Some other top-ranked stocks in the basic materials space are Koppers Holdings Inc. KOP, Daqo New Energy Corp. DQ and Kronos Worldwide Inc. KRO. All three stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.
Koppers has an expected long-term earnings growth rate of 18%. Its shares have moved up 23.5% year to date.
Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have surged a whopping 169.5% year to date.
Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have rallied 132.5% year to date.
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