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Here's What Makes Cabot (CBT) Stock a Solid Choice Right Now
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Cabot Corporation’s (CBT - Free Report) stock looks promising at the moment. It is benefiting from its growth actions and strong demand across regions and end markets. 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 take a look into the factors that make this Zacks Rank #1 (Strong Buy) stock an attractive choice for investors right now.
An Outperformer
Shares of Cabot are up 34.1% over the past year against the 4.1% decline of its industry. It has also outperformed the S&P 500’s roughly 5.8% rise over the same period.
Image Source: Zacks Investment Research
Estimates Moving Up
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Cabot for fiscal 2022 has increased around 7.8%. The consensus estimate for fiscal 2023 has also been revised 7.7% upward over the same time frame.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for the current fiscal for Cabot is currently pegged at $5.80, reflecting an expected year-over-year growth of 15.5%. Earnings are also expected to register a 10.1% growth in fiscal 2023.
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 Cabot is 28.9%, above the industry’s level of 25.4%.
Growth Drivers in Place
Cabot should gain from a recovery in demand from the pandemic-led slowdown, its disciplined execution of operations and targeted growth initiatives. The company is also well placed to benefit from its strategic acquisitions.
The acquisition of the Tokai Carbon Black Plant, which was completed recently, is expected to boost growth of the company’s Battery Materials product line. The Tokai site has a present annual capacity of 50,000 metric tons of carbon black and Cabot’s planned investment will add more steam to the capabilities of battery-grade production.
The buyout of Tokai Carbon is in sync with Cabot’s strategy of executing growth opportunities in high-growth and high-performance markets such as battery materials. The investment will enable it to better meet the demand for lithium-ion batteries and run its operations responsibly such that they reduce the environmental impact.
The company is also 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.
Some other top-ranked stocks worth considering in the basic materials space include The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Mosaic, sporting a Zacks Rank #1, has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 22.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 70% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 20.8% for the current year. ASIX's consensus estimate for current-year earnings has been revised 15.7% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 77% in a year.
Commercial Metals, carrying a Zacks Rank #2, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has gained around 45% in a year.
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Here's What Makes Cabot (CBT) Stock a Solid Choice Right Now
Cabot Corporation’s (CBT - Free Report) stock looks promising at the moment. It is benefiting from its growth actions and strong demand across regions and end markets. 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 take a look into the factors that make this Zacks Rank #1 (Strong Buy) stock an attractive choice for investors right now.
An Outperformer
Shares of Cabot are up 34.1% over the past year against the 4.1% decline of its industry. It has also outperformed the S&P 500’s roughly 5.8% rise over the same period.
Image Source: Zacks Investment Research
Estimates Moving Up
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Cabot for fiscal 2022 has increased around 7.8%. The consensus estimate for fiscal 2023 has also been revised 7.7% upward over the same time frame.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for the current fiscal for Cabot is currently pegged at $5.80, reflecting an expected year-over-year growth of 15.5%. Earnings are also expected to register a 10.1% growth in fiscal 2023.
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 Cabot is 28.9%, above the industry’s level of 25.4%.
Growth Drivers in Place
Cabot should gain from a recovery in demand from the pandemic-led slowdown, its disciplined execution of operations and targeted growth initiatives. The company is also well placed to benefit from its strategic acquisitions.
The acquisition of the Tokai Carbon Black Plant, which was completed recently, is expected to boost growth of the company’s Battery Materials product line. The Tokai site has a present annual capacity of 50,000 metric tons of carbon black and Cabot’s planned investment will add more steam to the capabilities of battery-grade production.
The buyout of Tokai Carbon is in sync with Cabot’s strategy of executing growth opportunities in high-growth and high-performance markets such as battery materials. The investment will enable it to better meet the demand for lithium-ion batteries and run its operations responsibly such that they reduce the environmental impact.
The company is also 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.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Other Stocks to Consider
Some other top-ranked stocks worth considering in the basic materials space include The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Mosaic, sporting a Zacks Rank #1, has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 22.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 70% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 20.8% for the current year. ASIX's consensus estimate for current-year earnings has been revised 15.7% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 77% in a year.
Commercial Metals, carrying a Zacks Rank #2, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has gained around 45% in a year.