We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of Univar Solutions Inc. scaled a fresh 52-week high of $27.41 on May 21, before closing the session at $27.20.
The company, carrying a Zacks Rank #1 (Strong Buy), has a market cap of around $4.6 billion. It also has an expected long-term earnings per share growth rate of 14%.
The stock has surged 91.8% in the past year against 67.3% rise of the industry.
What’s Driving UNVR?
Better-than-expected earnings performance in the first quarter, upbeat outlook and buoyant prospects from the Nexeo acquisition have contributed to the rise in Univar’s shares.
Univar’s adjusted earnings of 43 cents per share in the first quarter topped the Zacks Consensus Estimate of 32 cents. The company, in May, stated that it now expects adjusted EBITDA between $680 million and $700 million for 2021, up from the prior view of $630-$650 million. It also projects adjusted EBITDA in the band of $180-$190 million for second-quarter 2021.
Net free cash flow for the year is also projected in the band of $280-$300 million. Univar expects an improvement in volumes on the reopening of the North America and European economies.
Univar is likely to gain from its continuous market expansion and acquisition. Notably, the acquisition of Nexeo Solutions will further enhance capabilities and accelerate its ability to create significant value for customers, supplier partners, employees and shareholders. Univar is progressing well with the integration of Nexeo. The company expects to achieve annual net synergy from Nexeo of $120 million by early 2022.
Univar is focused on cost-cutting, expense management and productivity actions, which are helping the company minimize operational costs and boost margins. It is taking a number of actions to reduce costs in the wake of the coronavirus pandemic including reduction in travel and other discretionary spending.
The company is also poised to benefit from chemical price inflation due to disruption in the supply chain. Moreover, Univar saw higher gross margins across all segments in the quarter, partly driven by the price inflation. It expects to continue to benefit from chemical price inflation in the second quarter of 2021 amid persistent supply chain disruptions.
Some other top-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Celanese Corporation (CE - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 90.6% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected earnings growth rate of around 68.3% for the current year. The company’s shares have gained 92% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 83.1% in the past year. It currently flaunts a Zacks Rank #1.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Univar (UNVR) Stock Hits 52-Week High: What's Driving It?
Shares of Univar Solutions Inc. scaled a fresh 52-week high of $27.41 on May 21, before closing the session at $27.20.
The company, carrying a Zacks Rank #1 (Strong Buy), has a market cap of around $4.6 billion. It also has an expected long-term earnings per share growth rate of 14%.
The stock has surged 91.8% in the past year against 67.3% rise of the industry.
What’s Driving UNVR?
Better-than-expected earnings performance in the first quarter, upbeat outlook and buoyant prospects from the Nexeo acquisition have contributed to the rise in Univar’s shares.
Univar’s adjusted earnings of 43 cents per share in the first quarter topped the Zacks Consensus Estimate of 32 cents. The company, in May, stated that it now expects adjusted EBITDA between $680 million and $700 million for 2021, up from the prior view of $630-$650 million. It also projects adjusted EBITDA in the band of $180-$190 million for second-quarter 2021.
Net free cash flow for the year is also projected in the band of $280-$300 million. Univar expects an improvement in volumes on the reopening of the North America and European economies.
Univar is likely to gain from its continuous market expansion and acquisition. Notably, the acquisition of Nexeo Solutions will further enhance capabilities and accelerate its ability to create significant value for customers, supplier partners, employees and shareholders. Univar is progressing well with the integration of Nexeo. The company expects to achieve annual net synergy from Nexeo of $120 million by early 2022.
Univar is focused on cost-cutting, expense management and productivity actions, which are helping the company minimize operational costs and boost margins. It is taking a number of actions to reduce costs in the wake of the coronavirus pandemic including reduction in travel and other discretionary spending.
The company is also poised to benefit from chemical price inflation due to disruption in the supply chain. Moreover, Univar saw higher gross margins across all segments in the quarter, partly driven by the price inflation. It expects to continue to benefit from chemical price inflation in the second quarter of 2021 amid persistent supply chain disruptions.
Univar Solutions Inc. Price and Consensus
Univar Solutions Inc. price-consensus-chart | Univar Solutions Inc. Quote
Other Stocks to Consider
Some other top-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Celanese Corporation (CE - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 90.6% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected earnings growth rate of around 68.3% for the current year. The company’s shares have gained 92% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 83.1% in the past year. It currently flaunts a Zacks Rank #1.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>