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Chemours (CC) Soars 5.5%: Is Further Upside Left in the Stock?

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Chemours (CC - Free Report) shares ended the last trading session 5.5% higher at $25.56. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.8% loss over the past four weeks.

CC’s rally appears to be driven by the optimism over a recovery in its Titanium Technologies segment. An improvement in its titanium dioxide (TiO2) order book and higher volumes are expected to contribute to improved performance in this unit. Moreover, the Thermal & Specialized Solutions segment is expected to benefit from the strong adoption of Opteon products in stationary end markets. The Advanced Performance Materials unit is expected to gain from continued growth in performance solutions and a recovery in economically sensitive end markets within the advanced materials portfolio.

This chemical company is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -37.3%. Revenues are expected to be $1.55 billion, down 5.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Chemours, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Chemours is a member of the Zacks Chemical - Diversified industry. One other stock in the same industry, Huntsman (HUN - Free Report) , finished the last trading session 1.8% lower at $24.14. HUN has returned -2.2% over the past month.

For Huntsman, the consensus EPS estimate for the upcoming report has changed +9% over the past month to $0.12. This represents a change of -45.5% from what the company reported a year ago. Huntsman currently has a Zacks Rank of #3 (Hold).


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