Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Why You Should Add Chemours (CC) Stock to Your Portfolio Now

By Zacks Investment ResearchStock MarketsJun 22, 2021 07:16AM ET
www.investing.com/analysis/why-you-should-add-chemours-cc-stock-to-your-portfolio-now-200587546
Why You Should Add Chemours (CC) Stock to Your Portfolio Now
By Zacks Investment Research   |  Jun 22, 2021 07:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Chemours Company (NYSE:CC)’s CC shares have shot up roughly 26% over the past six months. It is benefiting from higher demand for Opteon in mobile applications, strong execution and cost-cutting measures.

We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.

Chemours currently carries a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.

Let's see what makes this chemical maker an attractive investment option at the moment.

Price Performance

Shares of Chemours have rallied 35.3% year to date against the 8.2% rise of its industry. It has also outperformed the S&P 500’s 10.9% rise over the same period.

Zacks Investment Research
Zacks Investment Research
Image Source: Zacks Investment Research

Estimates Northbound

Over the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 16.9%. The consensus estimate for 2022 has also been revised 10% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.

Positive Earnings Surprise History

Chemours has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 55.2%, on average.

Attractive Valuation

Valuation looks attractive as Chemours’ shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.

Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, Chemours is currently trading at trailing 12-month EV/EBITDA multiple of 10.45, cheaper compared with the industry average of 11.53.

Superior Return on Equity (ROE)

ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Chemours is 43.3%, above the industry’s level of 11.3%.

Growth Drivers in Place

Chemours is benefiting from increasing adoption of the Opteon platform and growing applications of fluoropolymers, especially in automotive, electronics and energy end-markets. The company remains is committed toward driving Opteon adoption. The company is seeing higher demand for Opteon in mobile applications. It is ramping up production at the new low-cost Opteon Corpus Christi facility.

The company also stands to gain from its efforts to reduce costs. It is undertaking actions to cut costs by reducing overhead, discretionary spend and capital expenditures. The company, in 2020, benefited from its $160-million cost-management program aimed toward enhancing financial flexibility.

The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are also expected to support margins in 2021.

Stocks to Consider

Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NYSE:NUE) NUE, Cabot (NYSE:CBT) Corporation CBT and Impala Platinum (OTC:IMPUY) Holdings Limited IMPUY.

Nucor has a projected earnings growth rate of 344.9% for the current year. The company’s shares have surged around 127% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have rallied 56% in the past year. It currently carries a Zacks Rank #2.

Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 129% in the past year. It currently carries a Zacks Rank #2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


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

Nucor Corporation (NUE): Free Stock Analysis Report

Cabot Corporation (CBT): Free Stock Analysis Report

Impala Platinum Holdings Ltd. (IMPUY): Free Stock Analysis Report

The Chemours Company (CC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research
Why You Should Add Chemours (CC) Stock to Your Portfolio Now
 

Related Articles

Why You Should Add Chemours (CC) Stock to Your Portfolio Now

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email