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Cabot (CBT) Wraps Up Sale of Purification Solutions Business
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Cabot Corporation (CBT - Free Report) recently completed the earlier-announced divestiture of its Purification Solutions business to One Equity Partners, a private equity firm.
Cabot’s Purification Solutions business is a renowned player in the research, development, manufacturing, and sale of high-performing activated carbon used in a range of environmental, health, safety, and industrial applications. The business generated $257 million in revenues in 2021.
Cabot stated that this transaction suggests that the company is taking action to focus its portfolio so that it can invest resources to strengthen the core business segments. Moreover, it will allow it to deliver strategic growth plans as outlined in its ‘Creating for Tomorrow’ strategy.
Shares of Cabot have gained 43.1% in the past year compared with a 1.4% rise of the industry.
Image Source: Zacks Investment Research
Cabot, in its last earnings call, stated that it expects continued strong end-market demand and benefits from growth investments. Looking ahead to the rest of 2022, Reinforcement Materials is expected to benefit from customer agreements in the year. Growth in demand is anticipated for the Performance Chemicals segment along with strength in battery materials and inkjet packaging. The company is on track with its long-term guidance to generate more than $1 billion during the next three years and expects a strong free cash flow to fund high-growth investments. It is also committed to returning capital to shareholders through dividends and share repurchases.
Based on the positive outlook and strong fiscal first-quarter performance, CBT raised the adjusted earnings per share outlook for fiscal 2022 to the range of $5.50-$5.90 from the previous view of $5.20-$5.60.
For second-quarter fiscal 2022, it also expects demand improvement across all its key product lines and a boost in profitability.
Cabot currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Allegheny Technologies Incorporated (ATI - Free Report) , The Mosaic Company (MOS - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 29.1% over a year.
Mosaic, sporting a Zacks Rank #1, has a projected earnings growth rate of 103.8% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 20.7% upward in the past 60 days.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 85.1% in a year.
AdvanSix has a projected earnings growth rate of 17.3% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 12.4% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 12.4%. ASIX has surged 49% in a year. The company sports a Zacks Rank #1.
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Cabot (CBT) Wraps Up Sale of Purification Solutions Business
Cabot Corporation (CBT - Free Report) recently completed the earlier-announced divestiture of its Purification Solutions business to One Equity Partners, a private equity firm.
Cabot’s Purification Solutions business is a renowned player in the research, development, manufacturing, and sale of high-performing activated carbon used in a range of environmental, health, safety, and industrial applications. The business generated $257 million in revenues in 2021.
Cabot stated that this transaction suggests that the company is taking action to focus its portfolio so that it can invest resources to strengthen the core business segments. Moreover, it will allow it to deliver strategic growth plans as outlined in its ‘Creating for Tomorrow’ strategy.
Shares of Cabot have gained 43.1% in the past year compared with a 1.4% rise of the industry.
Image Source: Zacks Investment Research
Cabot, in its last earnings call, stated that it expects continued strong end-market demand and benefits from growth investments. Looking ahead to the rest of 2022, Reinforcement Materials is expected to benefit from customer agreements in the year. Growth in demand is anticipated for the Performance Chemicals segment along with strength in battery materials and inkjet packaging. The company is on track with its long-term guidance to generate more than $1 billion during the next three years and expects a strong free cash flow to fund high-growth investments. It is also committed to returning capital to shareholders through dividends and share repurchases.
Based on the positive outlook and strong fiscal first-quarter performance, CBT raised the adjusted earnings per share outlook for fiscal 2022 to the range of $5.50-$5.90 from the previous view of $5.20-$5.60.
For second-quarter fiscal 2022, it also expects demand improvement across all its key product lines and a boost in profitability.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Zacks Rank & Other Key Picks
Cabot currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Allegheny Technologies Incorporated (ATI - Free Report) , The Mosaic Company (MOS - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 29.1% over a year.
Mosaic, sporting a Zacks Rank #1, has a projected earnings growth rate of 103.8% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 20.7% upward in the past 60 days.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 85.1% in a year.
AdvanSix has a projected earnings growth rate of 17.3% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 12.4% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 12.4%. ASIX has surged 49% in a year. The company sports a Zacks Rank #1.