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Here's Why You Should Buy Univar (UNVR) Stock Right Now
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Shares of Univar Solutions Inc. have gained around 30% over the past six months. The company is benefiting from expense management actions, market expansion and synergies of the Nexeo Solutions acquisition.
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 delve deeper into the factors that make this Zacks Rank #1 (Strong Buy) stock an attractive choice for investors right now.
An Outperformer
Shares of Univar have popped 42.2% over a year against the 1.2% rise of its industry. It has also outperformed the S&P 500’s 13.1% rise over the same period.
Image Source: Zacks Investment Research
Positive Earnings Surprise History
Univar has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 31.5%, on average.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Univar for 2022 has increased around 34.2%. The consensus estimate for 2023 has also been revised 9.9% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Growth Drivers in Place
Univar is benefiting from market share gains, operational execution, cost minimization and a robust liquidity position. It is well placed to gain from consistent market expansion and acquisitions. Univar is also benefiting from chemical price inflation, which is contributing to its top line growth.
The acquisition of Nexeo Solutions also enhanced Univar’s capabilities and accelerated its ability to create a significant value for customers, supplier partners, employees and shareholders. Univar expects to achieve the targeted $120 million in annual net synergies from the Nexeo acquisition by early 2022.
The buyout of Brazilian ingredients and specialty chemicals distributor Sweetmix is also anticipated to drive growth for the company’s Food Ingredients portfolio in Brazil and generate growth and cost synergies. This will also springboard its Latin American expansion.
Univar is also 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 also has a solid liquidity position. At the end of fourth-quarter 2021, its liquidity was around $1 billion, including around $251.5 million cash-in-hand, and additional availability under committed, asset-based credit facilities. UNVR also expects the majority of its debt obligations to mature in 2026 and beyond. The company reduced leverage ratio to 2.5x at the end of 2021. Univar is benefiting from the advancement of its Streamline 2022 program, designed to boost operational agility and sales.
Other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 37.8% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien 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 60.3%, on average. NTR has rallied around 87% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 64.9% for the current year. ASIX's consensus estimate for current-year earnings has been revised 53% 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 90% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 114.7% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 35.1% 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 13.7%, on average. CMC has gained around 34% in a year.
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Here's Why You Should Buy Univar (UNVR) Stock Right Now
Shares of Univar Solutions Inc. have gained around 30% over the past six months. The company is benefiting from expense management actions, market expansion and synergies of the Nexeo Solutions acquisition.
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 delve deeper into the factors that make this Zacks Rank #1 (Strong Buy) stock an attractive choice for investors right now.
An Outperformer
Shares of Univar have popped 42.2% over a year against the 1.2% rise of its industry. It has also outperformed the S&P 500’s 13.1% rise over the same period.
Image Source: Zacks Investment Research
Positive Earnings Surprise History
Univar has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 31.5%, on average.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Univar for 2022 has increased around 34.2%. The consensus estimate for 2023 has also been revised 9.9% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Growth Drivers in Place
Univar is benefiting from market share gains, operational execution, cost minimization and a robust liquidity position. It is well placed to gain from consistent market expansion and acquisitions. Univar is also benefiting from chemical price inflation, which is contributing to its top line growth.
The acquisition of Nexeo Solutions also enhanced Univar’s capabilities and accelerated its ability to create a significant value for customers, supplier partners, employees and shareholders. Univar expects to achieve the targeted $120 million in annual net synergies from the Nexeo acquisition by early 2022.
The buyout of Brazilian ingredients and specialty chemicals distributor Sweetmix is also anticipated to drive growth for the company’s Food Ingredients portfolio in Brazil and generate growth and cost synergies. This will also springboard its Latin American expansion.
Univar is also 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 also has a solid liquidity position. At the end of fourth-quarter 2021, its liquidity was around $1 billion, including around $251.5 million cash-in-hand, and additional availability under committed, asset-based credit facilities. UNVR also expects the majority of its debt obligations to mature in 2026 and beyond. The company reduced leverage ratio to 2.5x at the end of 2021. Univar is benefiting from the advancement of its Streamline 2022 program, designed to boost operational agility and sales.
Univar Solutions Inc. Price and Consensus
Univar Solutions Inc. price-consensus-chart | Univar Solutions Inc. Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 37.8% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien 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 60.3%, on average. NTR has rallied around 87% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 64.9% for the current year. ASIX's consensus estimate for current-year earnings has been revised 53% 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 90% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 114.7% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 35.1% 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 13.7%, on average. CMC has gained around 34% in a year.