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LyondellBasell (LYB) Stock Sinks As Market Gains: What You Should Know

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LyondellBasell (LYB - Free Report) closed at $89 in the latest trading session, marking a -0.39% move from the prior day. This change lagged the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.07%.

Prior to today's trading, shares of the oil refiner and chemical company had lost 2.03% over the past month. This has was narrower than the Basic Materials sector's loss of 9.96% and lagged the S&P 500's gain of 7.25% in that time.

Investors will be hoping for strength from LyondellBasell as it approaches its next earnings release, which is expected to be July 29, 2022. On that day, LyondellBasell is projected to report earnings of $4.91 per share, which would represent a year-over-year decline of 19.9%. Our most recent consensus estimate is calling for quarterly revenue of $14.33 billion, up 23.96% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.60 per share and revenue of $53.22 billion. These totals would mark changes of -3.24% and +15.25%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for LyondellBasell. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.38% lower. LyondellBasell is currently a Zacks Rank #3 (Hold).

Looking at its valuation, LyondellBasell is holding a Forward P/E ratio of 5.08. Its industry sports an average Forward P/E of 9.39, so we one might conclude that LyondellBasell is trading at a discount comparatively.

Investors should also note that LYB has a PEG ratio of 0.63 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LYB's industry had an average PEG ratio of 1.23 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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