Markets
News
Analysis
User
24/7
Economic Calendar
Education
Data
- Names
- Latest
- Prev
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
No matching data
Latest Views
Latest Views
Trending Topics
To quickly learn market dynamics and follow market focuses in 15 min.
In the world of mankind, there will not be a statement without any position, nor a remark without any purpose.
Inflation, exchange rates, and the economy shape the policy decisions of central banks; the attitudes and words of central bank officials also influence the actions of market traders.
Money makes the world go round and currency is a permanent commodity. The forex market is full of surprises and expectations.
Top Columnists
Enjoy exciting activities, right here at FastBull.
The latest breaking news and the global financial events.
I have 5 years of experience in financial analysis, especially in aspects of macro developments and medium and long-term trend judgment. My focus is maily on the developments of the Middle East, emerging markets, coal, wheat and other agricultural products.
BeingTrader chief Trading Coach & Speaker, 8+ years of experience in the forex market trading mainly XAUUSD, EUR/USD, GBP/USD, USD/JPY, and Crude Oil. A confident trader and analyst who aims to explore various opportunities and guide investors in the market. As an analyst I am looking to enhance the trader’s experience by supporting them with sufficient data and signals.
Latest Update
Risk Warning on Trading HK Stocks
Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.
HK Stock Trading Fees and Taxation
Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.
HK Non-Essential Consumer Goods Industry
The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.
HK Real Estate Industry
In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
View All
No data
Not Logged In
Log in to access more features
FastBull Membership
Not yet
Purchase
Log In
Sign Up
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
For Immediate Release
Chicago, IL – September 18, 2024 – Today, Zacks Equity Research discusses Axalta Coating Systems Ltd. AXTA, Hawkins, Inc. HWKN and AdvanSix Inc. ASIX.
Industry: Specialty Chemicals
Link: https://www.zacks.com/commentary/2336896/3-chemical-specialty-stocks-to-watch-amid-industry-challenges
The Zacks Chemicals Specialty industry is mired with challenges from sluggish demand, largely due to the slowdown in Europe and a slow economic recovery in China. Margins of companies in this space also remain under pressure due to the still-elevated input, supply chain and logistics costs.
Industry players like Axalta Coating Systems Ltd., Hawkins, Inc. and AdvanSix Inc. are banking on strategic measures, including operating cost reductions, to tide over a persistently challenging environment.
About the Industry
The Zacks Chemicals Specialty industry consists of manufacturers of specialty chemical products for a host of end-use markets such as textile, paper, automotive, electronics, personal care, energy, construction, food & beverages and agriculture. These chemicals (including catalysts, surfactants, specialty polymers, coating additives, pesticides and oilfield chemicals) are used based on their performance and have a specific purpose.
Specialty chemicals can be single molecules or a combination of molecules referred to as formulations, and they provide a vast range of effects upon which various industries rely. Their compositions significantly influence the performance of the finished products. Specialty chemicals have applications in the manufacturing process of a vast range of products, including paints and coatings, cosmetics, petroleum products, inks and plastics.
What's Shaping the Future of the Chemical Specialty Industry?
Headwinds From Demand Slowdown: Companies in the chemical specialty space are facing headwinds from demand softness in building and construction as well as industrial end markets, especially in Europe and China, due to the economic slowdown. Elevated borrowing costs and inflation have taken a bite out of the residential construction industry. Manufacturing activities have also weakened amid softer demand for goods and higher borrowing costs.
A slower recovery in economic activities in China is hurting demand in that country. The ongoing geopolitical tension, high inflation and elevated interest rates have also dampened demand in Europe. While customer inventory de-stocking is almost complete, some lingering impacts of the same in certain markets are expected to continue over the near term. The demand slowdown is likely to weigh on volumes of chemical specialty companies.
Cost Pressure Still a Concern: Specialty chemical makers are facing headwinds from raw material cost inflation, and supply-chain and freight transportation disruptions. The closure of a large swath of factories to stem the spread of the COVID-19 outbreak disrupted the global supply chain.
The Russia-Ukraine conflict and new lockdowns in China put further pressure on the global supply chain. These affected the availability of key raw materials for the chemical specialty industry. Some companies are also facing challenges from elevated logistics and labor costs. While raw material costs have moderated somewhat lately, driven by the easing of supply-chain disruptions, they remain higher than the pre-pandemic levels. The lingering impacts of inflationary pressures are expected to continue over the short haul and weigh on the margins of chemical specialty companies.
Self-Help Actions to Aid Results: The companies in this space are executing a raft of self-help measures — including cost-cutting and productivity improvement, expansion into high-growth markets, restructuring, operational efficiency improvement, and actions to strengthen the balance sheet and boost cash flows — in a bid to stay afloat amid the prevailing headwinds. The industry participants are aggressively implementing actions to cut costs. The measures are likely to help the companies sail through the ongoing challenges.
Zacks Industry Rank Indicates Bleak Prospects
The Zacks Chemicals Specialty industry is part of the broader Zacks Basic Materials sector. It carries a Zacks Industry Rank #218, which places it in the bottom 13% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates a gloomy near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms Sector and S&P 500
The Zacks Chemicals Specialty industry has underperformed both the Zacks S&P 500 composite and the broader Zacks Basic Materials sector over the past year.
The industry has lost 9.2% over this period compared with the S&P 500’s rise of 25.7% and the broader sector’s increase of 0.7%.
Industry's Current Valuation
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA) ratio, which is a commonly used multiple for valuing chemical stocks, the industry is currently trading at 19.77X, above the S&P 500’s 18.87X and the sector’s 11.47X.
Over the past five years, the industry has traded as high as 20.19X, as low as 7.1X, with a median of 10.59X.
3 Chemical Specialty Stocks to Keep a Close Eye On
Hawkins: Minnesota-based Hawkins is a leading specialty chemical and ingredients company that formulates, distributes, blends and manufactures products for its customers. Hawkins is seeing strong growth in its Water Treatment segment, reflecting its strategic emphasis on the water treatment sector, including the successful integration of recent acquisitions.
The acquisition of Industrial Research Corporation aligns with Hawkins’ growth strategy in central and northern Louisiana, eastern Texas and southern Arkansas, complementing its existing operations and enhancing its market presence. HWKN recently acquired Wofford Water Service, extending its reach in Mississippi and supporting the company’s expansion in the southern United States, where its Water Treatment business had been limited previously. HWKN’s judicious pricing strategy to counter cost inflation is also supporting results. It also remains committed to enhancing shareholders’ value.
Hawkins, carrying a Zacks Rank #1 (Strong Buy), has expected earnings growth of 15.3% for the current fiscal year. The Zacks Consensus Estimate for HWKN’s earnings for the current fiscal has moved up 12.8% over the last 60 days.
AdvanSix: New Jersey-based AdvanSix is a manufacturer of nylon 6 resin, chemical intermediates and ammonium sulfate fertilizer. It is benefiting from its differentiated product portfolio, exposure to diverse end markets and favorable demand and pricing. ASIX is expected to gain from improved nylon demand conditions and the growth of its differentiated products.
The favorable agricultural industry fundamentals also bode well for ammonium sulfate. AdvanSix has a healthy balance sheet and generates substantial cash flows, which allows it to drive shareholder value and fund growth initiatives.
The consensus estimate for ASIX’s current-year earnings has been revised upward by 27.3% over the last 60 days. AdvanSix carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta Coating Systems: Pennsylvania-based Axalta is a global coatings company engaged in the manufacturing, marketing and distribution of coatings solutions. AXTA is benefiting from the strength in refinish and light vehicle businesses, which is offsetting the weakness in industrial markets.
The acquisition of CoverFlexx Group will enhance Axalta's refinish business by incorporating the extensive range of automotive refinish and aftermarket coatings, including primers, basecoats, clearcoats and various detailing products of the former. Axalta has also strategically expanded its portfolio by acquiring Andre Koch AG, a well-established Refinish distribution partner headquartered in Switzerland.
Axalta, carrying a Zacks Rank #3 (Hold), has expected earnings growth of 31.8% for the current year. The Zacks Consensus Estimate for AXTA’s current-year earnings has been revised upward by 4.5% over the last 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Investment Research
FMC Corporation FMC benefits from efforts to expand its product portfolio through new product launches and its restructuring actions amid headwinds from pricing and cost pressures and a slower demand recovery.
FMC’s shares are down 14.1% in a year compared with a 7.1% decline of its industry.
Let’s find out why FMC stock is worth retaining at the moment.
New Products, Restructuring Actions Aid FMC Stock
FMC remains focused on strengthening its product portfolio. It is investing in technologies as well as new product launches to enhance value to the farmers. New products launched in Europe, North America and Asia are gaining significant traction. Product introductions are expected to support the company’s results this year.
FMC generated $590 million in sales in 2023 from new products launched in the past five years. It expects revenues from new products to grow by roughly $200 million in 2024. It expects a significant amount of volume growth to come from new products in the second half of 2024. FMC is seeing strong gains in new products including Coragen eVo and Premio Star insecticides and the Onsuva fungicide in Latin America.
The acquisition of BioPhero ApS, a Denmark-based pheromone research and production company, also adds biologically produced state-of-the-art pheromone insect control technology to the company’s product portfolio and R&D pipeline, highlighting FMC's role as a leader in delivering innovative and sustainable crop protection solutions.
The company is also expected to benefit from reduced input costs, favorable product mix and its cost-control actions. It benefited from favorable input costs in the second quarter of 2024. FMC is also making progress with its global restructuring and cost-reduction program. It sees benefits from restructuring to contribute $75-$100 million to full-year 2024 adjusted EBITDA, net of inflation.
Pricing and Cost Pressures to Weigh on FMC’s Margins
FMC is exposed to headwinds from pricing pressure in all regions. In the second quarter of 2024, a 14% year-over-year increase in volumes on the back of improved demand was offset by a 10% decline in prices. Lower prices were partly driven by competitive pressure due to demand recovery and strategic pricing on less differentiated products. The pricing pressure is expected to continue in the third quarter.
Factoring in the slower demand recovery and pricing headwinds, FMC has updated its revenue outlook for full-year 2024 and now sees revenues between $4.30 billion and $4.50 billion, indicating a 2% decline at the midpoint compared to 2023. The revised guidance is 4% lower at the midpoint versus its earlier guidance. While the company is seeing a return of demand in most regions, the recovery has been slower than what it had originally expected.
FMC also faces challenges from significant unobserved fixed costs, which are expected to weigh on its profits. It faces headwinds from a higher cost of goods sold (COGS) in the in the third quarter of 2024. It expects COGS headwinds of roughly $40 million in the third quarter mainly related to unabsorbed fixed costs associated with reduced manufacturing activities. Cost headwinds are expected to weigh on FMC’s EBITDA in the third quarter and full-year 2024.
FMC Corporation Stock Price and Consensus
FMC Corporation price-consensus-chart | FMC Corporation Quote
FMC’s Zacks Rank & Other Key Picks
FMC currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Basic Materials space are, Hawkins, Inc. HWKN, IAMGOLD Corporation IAG and Eldorado Gold Corporation EGO, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from year-ago levels. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days. The stock has rallied around 95% in the past year.
The consensus estimate for IAMGOLD’s current-year earnings has increased by 46.4% in the past 60 days. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 115% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 75% in the past year.
Zacks Investment Research
Cleveland-Cliffs Inc. CLF announced that the shareholders of Stelco Holdings Inc have voted in favor of the special resolution concerning CLF’s previously announced acquisition of Stelco. The resolution was overwhelmingly approved at a special shareholder meeting, receiving support from 99.97% of the votes cast. The transaction is expected to be completed in fourth-quarter 2024, pending the fulfillment or waiver of the remaining conditions stated in the arrangement agreement. After the transaction's completion, Stelco will operate as a wholly-owned subsidiary of Cleveland-Cliffs.
The company voiced its satisfaction with the outcome, stating that the strong backing from Stelco shareholders reflects overwhelming support for the acquisition. With Stelco and the USW in Canada, CLF aims to strengthen its position as a leading North American steel producer, benefiting both Canada and the United States.
Cleveland-Cliffs Inc. Price and Consensus
Cleveland-Cliffs Inc. price-consensus-chart | Cleveland-Cliffs Inc. Quote
As part of the deal, Stelco shareholders will receive C$60 in cash and 0.454 shares of Cleveland-Cliffs common stock per Stelco share (equivalent to C$10 per share as of July 12, 2024), bringing the total to C$70 per Stelco share.
The acquisition will enhance CLF’s steelmaking capabilities, doubling its exposure to the flat-rolled spot market and leveraging cost advantages in raw materials, energy, healthcare and currency. Stelco's integration will diversify CLF’s customer base across construction and industrial sectors, generating synergies in procurement, overhead and public company-related expenses.
Shares of CLF are down 15.4% in the past year compared with a 9.6% fall of its industry.
CLF’s Zacks Rank & Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Hawkins, Inc. HWKN, Carpenter Technology Corporation CRS and Eldorado Gold Corporation EGO, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from the year-ago level. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days.The stock has rallied around 95% in the past year.
The Zacks Consensus Estimate for Carpenter Technology’scurrent-year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the trailing four quarters, the average earnings surprise being 15.9%. The stock has surged nearly 108.8% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the trailing four quarters, with the average surprise being 430.3%. The company's shares have surged nearly 75.3% in the past year.
Zacks Investment Research
The Zacks Chemicals Specialty industry is mired with challenges from sluggish demand, largely due to the slowdown in Europe and a slow economic recovery in China. Margins of companies in this space also remain under pressure due to the still-elevated input, supply chain and logistics costs.
Industry players like Axalta Coating Systems Ltd. AXTA, Hawkins, Inc. HWKN and AdvanSix Inc. ASIX are banking on strategic measures, including operating cost reductions, to tide over a persistently challenging environment.
About the Industry
The Zacks Chemicals Specialty industry consists of manufacturers of specialty chemical products for a host of end-use markets such as textile, paper, automotive, electronics, personal care, energy, construction, food & beverages and agriculture. These chemicals (including catalysts, surfactants, specialty polymers, coating additives, pesticides and oilfield chemicals) are used based on their performance and have a specific purpose. Specialty chemicals can be single molecules or a combination of molecules referred to as formulations, and they provide a vast range of effects upon which various industries rely. Their compositions significantly influence the performance of the finished products. Specialty chemicals have applications in the manufacturing process of a vast range of products, including paints and coatings, cosmetics, petroleum products, inks and plastics.
What's Shaping the Future of the Chemical Specialty Industry?
Headwinds From Demand Slowdown: Companies in the chemical specialty space are facing headwinds from demand softness in building and construction as well as industrial end markets, especially in Europe and China, due to the economic slowdown. Elevated borrowing costs and inflation have taken a bite out of the residential construction industry. Manufacturing activities have also weakened amid softer demand for goods and higher borrowing costs. A slower recovery in economic activities in China is hurting demand in that country. The ongoing geopolitical tension, high inflation and elevated interest rates have also dampened demand in Europe. While customer inventory de-stocking is almost complete, some lingering impacts of the same in certain markets are expected to continue over the near term. The demand slowdown is likely to weigh on volumes of chemical specialty companies.
Cost Pressure Still a Concern: Specialty chemical makers are facing headwinds from raw material cost inflation, and supply-chain and freight transportation disruptions. The closure of a large swath of factories to stem the spread of the COVID-19 outbreak disrupted the global supply chain. The Russia-Ukraine conflict and new lockdowns in China put further pressure on the global supply chain. These affected the availability of key raw materials for the chemical specialty industry. Some companies are also facing challenges from elevated logistics and labor costs. While raw material costs have moderated somewhat lately, driven by the easing of supply-chain disruptions, they remain higher than the pre-pandemic levels. The lingering impacts of inflationary pressures are expected to continue over the short haul and weigh on the margins of chemical specialty companies.
Self-Help Actions to Aid Results: The companies in this space are executing a raft of self-help measures — including cost-cutting and productivity improvement, expansion into high-growth markets, restructuring, operational efficiency improvement, and actions to strengthen the balance sheet and boost cash flows — in a bid to stay afloat amid the prevailing headwinds. The industry participants are aggressively implementing actions to cut costs. The measures are likely to help the companies sail through the ongoing challenges.
Zacks Industry Rank Indicates Bleak Prospects
The Zacks Chemicals Specialty industry is part of the broader Zacks Basic Materials sector. It carries a Zacks Industry Rank #218, which places it in the bottom 13% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates a gloomy near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms Sector and S&P 500
The Zacks Chemicals Specialty industry has underperformed both the Zacks S&P 500 composite and the broader Zacks Basic Materials sector over the past year.
The industry has lost 9.2% over this period compared with the S&P 500’s rise of 25.7% and the broader sector’s increase of 0.7%.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA) ratio, which is a commonly used multiple for valuing chemical stocks, the industry is currently trading at 19.77X, above the S&P 500’s 18.87X and the sector’s 11.47X.
Over the past five years, the industry has traded as high as 20.19X, as low as 7.1X, with a median of 10.59X, as the chart below shows.
Enterprise Value/EBITDA (EV/EBITDA) Ratio
Enterprise Value/EBITDA (EV/EBITDA) Ratio
3 Chemical Specialty Stocks to Keep a Close Eye on
Hawkins: Minnesota-based Hawkins is a leading specialty chemical and ingredients company that formulates, distributes, blends and manufactures products for its customers. Hawkins is seeing strong growth in its Water Treatment segment, reflecting its strategic emphasis on the water treatment sector, including the successful integration of recent acquisitions. The acquisition of Industrial Research Corporation aligns with Hawkins’ growth strategy in central and northern Louisiana, eastern Texas and southern Arkansas, complementing its existing operations and enhancing its market presence. HWKN recently acquired Wofford Water Service, extending its reach in Mississippi and supporting the company’s expansion in the southern United States, where its Water Treatment business had been limited previously. HWKN’s judicious pricing strategy to counter cost inflation is also supporting results. It also remains committed to enhancing shareholders’ value.
Hawkins, carrying a Zacks Rank #1 (Strong Buy), has expected earnings growth of 15.3% for the current fiscal year. The Zacks Consensus Estimate for HWKN’s earnings for the current fiscal has moved up 12.8% over the last 60 days.
Price and Consensus: HWKN
AdvanSix: New Jersey-based AdvanSix is a manufacturer of nylon 6 resin, chemical intermediates and ammonium sulfate fertilizer. It is benefiting from its differentiated product portfolio, exposure to diverse end markets and favorable demand and pricing. ASIX is expected to gain from improved nylon demand conditions and the growth of its differentiated products. The favorable agricultural industry fundamentals also bode well for ammonium sulfate. AdvanSix has a healthy balance sheet and generates substantial cash flows, which allows it to drive shareholder value and fund growth initiatives.
The consensus estimate for ASIX’s current-year earnings has been revised upward by 27.3% over the last 60 days. AdvanSix carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: ASIX
Axalta Coating Systems: Pennsylvania-based Axalta is a global coatings company engaged in the manufacturing, marketing and distribution of coatings solutions. AXTA is benefiting from the strength in refinish and light vehicle businesses, which is offsetting the weakness in industrial markets. The acquisition of CoverFlexx Group will enhance Axalta's refinish business by incorporating the extensive range of automotive refinish and aftermarket coatings, including primers, basecoats, clearcoats and various detailing products of the former. Axalta has also strategically expanded its portfolio by acquiring Andre Koch AG, a well-established Refinish distribution partner headquartered in Switzerland.
Axalta, carrying a Zacks Rank #3 (Hold), has expected earnings growth of 31.8% for the current year. The Zacks Consensus Estimate for AXTA’s current-year earnings has been revised upward by 4.5% over the last 60 days.
Price and Consensus: AXTA
Zacks Investment Research
Steel Dynamics, Inc. STLD has issued earnings guidance for the third quarter of 2024 in the $1.94-$1.98 per share range. This represents a decline from the company's second-quarter 2024 earnings of $2.72 per share and its third-quarter 2023 earnings of $3.47.
STLD’s steel operations profitability is expected to be significantly lower than the second quarter due to reduced average realized pricing in the flat rolled operations. Approximately 80% of this business is contract-based, linked to lagging pricing indices. However, flat rolled steel prices have stabilized and are showing improvement, with underlying demand remaining consistent.
The metals recycling division's earnings for the third quarter of 2024 are anticipated to be in line with second-quarter results, as steady volumes offset the impact of slightly lower realized pricing.
Steel Dynamics, Inc. Price and Consensus
Steel Dynamics, Inc. price-consensus-chart | Steel Dynamics, Inc. Quote
In the steel fabrication segment, earnings are forecasted to be moderately lower than the previous quarter due to a slight dip in average realized pricing. However, the order backlog remains steady and extends into the first quarter of 2025, with pricing at attractive levels. Current order activity is stable and demand is expected to grow in 2025, fueled by an expected decline in interest rates, the U.S. infrastructure program and increasing onshoring efforts. This growth is likely to benefit not only steel joist and deck products but also flat rolled and long product steels.
Demonstrating continued confidence in the company’s earnings outlook and cash flow, Steel Dynamics repurchased $307 million worth of its common stock through Sept. 11, 2024.
Shares of Steel Dynamics have gained 13.1% in the past year against a 14.3% decline in its industry.
STLD’s Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Hawkins, Inc. HWKN, Carpenter Technology Corporation CRS and Eldorado Gold Corporation EGO, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14 per share, indicating a rise of 15.3% from the year-ago level. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days.The stock has rallied around 95% in the past year.
The Zacks Consensus Estimate for Carpenter Technology’s current-year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the trailing four quarters, with the average surprise being 15.9%. The stock has surged nearly 108.8% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 430.3%. The company's shares have surged nearly 75.3% in the past year.
Zacks Investment Research
Reliance, Inc. RS has entered into an amended and restated five-year unsecured revolving credit facility worth $1.5 billion. The company expects to use funds borrowed under the facility for general corporate purposes, growth and stockholder returns.
The company's improved financial health and upgraded credit ratings after the most recent renewal in 2020 have allowed it to secure more favorable pricing and fewer restrictive covenants. The company believes that this amended and restated credit agreement not only strengthens its already strong liquidity position but also increases its ability to continue pursuing its capital allocation strategies.
At the end of the second quarter of 2024, RS had $350.8 million in cash and cash equivalents while carrying $1.15 billion in total outstanding debt. In the quarter, RS generated cash flow from operations of $366.3 million.
Reliance’s shares have rallied 5.9% in the past year against a 9.6% fall of the industry.
Reliance, on its second-quarter call, said that it anticipates that underlying demand will remain relatively stable across most of the end markets it serves in third-quarter 2024. However, shipment levels are expected to be adversely impacted by normal seasonal patterns, including a decline in shipping volumes due to planned customer shutdowns and vacation schedules.
The company estimates that its tons sold will decline 2.5-4.5% in the third quarter of 2024 from the second-quarter tally but increase 4.5-6.5% year over year. The company expects its average selling price per ton sold in the third quarter to be down 2-4% from the second quarter due to lower prices for carbon steel products. It anticipates some pressure on its gross profit margin in the quarter. Based on these expectations, the company expects adjusted earnings per share to be in the range of $3.60-$3.80 for the third quarter of 2024.
Reliance, Inc. Price and Consensus
Reliance, Inc. price-consensus-chart | Reliance, Inc. Quote
Zacks Rank & Key Picks
RS currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Eldorado Gold Corporation EGO and Hawkins, Inc. HWKN.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 108.8% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 75.3% in the past year.
The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from year-ago levels. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days. HWKN, a Zacks Rank #1 stock, has rallied around 94.9% in the past year.
Zacks Investment Research
Dow Inc. DOW recently launched a line of REVOLOOP Recycled Plastics Resins that incorporate post-consumer recycled (PCR) material into cable jacketing to meet the diverse needs and circularity objectives of customers throughout the world.
This latest addition to Dow's REVOLOOP Resins range focuses on a similar performance as virgin plastic material for cable jackets while providing sustainable benefits, representing a significant step forward in Dow's commitment to circularity.
Adopting PCR into wire and cable products helps divert plastic waste from landfills and the natural environment by introducing it into the circular ecosystem, highlighting Dow's goal of "Transform the Waste" by commercializing 3 million metric tons of circular and renewable solutions per year by 2030.
DOW expanded its sustainability offering by introducing REVOLOOP Resins for the global wire and cable industry, as well as assisting power and telecoms customers in achieving their own goals. This range of products, coupled with the company's unwavering dedication to quality and dependability, as well as the great value DOW places on safety, helps support its clients' approaches to PCR around the world.
Dow is contributing to a transformation in the processing and application of PCR ingredients by combining its extensive industry knowledge, cutting-edge technology development and dependability as a trusted one-stop-shop supplier for the wire and cable industry, providing customers with more global options to meet their goals.
Shares of DOW have lost 5.1% over the past year compared with a 7.1% decline of its industry.
Dow recently updated its third-quarter 2024 earnings guidance. It sees revenues of approximately $10.6 billion and operating EBITDA of about $1.3 billion. Dow stated that its revised outlook is mainly prompted by a major unexpected incident in late July at one of its ethylene crackers in Texas. The company is also dealing with higher input costs and margin pressures in Europe.
For the fourth quarter, Dow indicated that demand is expected to align with typical seasonal trends. It anticipates benefiting from lower turnaround costs, increased operating rates as the Texas cracker ramps up, and fewer weather-related disruptions in the U.S. Gulf Coast. Dow emphasized its commitment to maintaining strong operational and financial discipline while continuing to focus on long-term growth initiatives.
Dow Inc. Price and Consensus
Dow Inc. price-consensus-chart | Dow Inc. Quote
Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Eldorado Gold Corporation EGO and Hawkins, Inc. HWKN.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 108.8% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 75.3% in the past year.
The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from year-ago levels. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days. HWKN, a Zacks Rank #1 stock, has rallied around 94.9% in the past year.
Zacks Investment Research
White Label
Data API
Web Plug-ins
Poster Maker
Affiliate Program
The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.
Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.