We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Add Cabot Stock to Your Portfolio Now
Read MoreHide Full Article
Cabot Corporation (CBT - Free Report) registered a 20.4% rise in its stock value in the past six months, fueled by strong earnings outperformance, upward revisions to earnings guidance and robust performance across its business segments.
The stock offers an attractive investment opportunity with strong growth prospects, as reflected in its Zacks Rank #2 (Buy).
Impressive Earnings Surprise History
CBT has consistently outperformed the Zacks Consensus Estimate, delivering positive earnings surprises in each of the last four quarters, with an average surprise of 8.6% over this period.
Cabot’s Strong Growth Prospects
The Zacks Consensus Estimate for CBT's fiscal 2024 earnings is pegged at $7.07, suggesting a 31.4% increase from the previous year’s tally. Earnings are projected to increase 10.6% in the fiscal 2025.
CBT’s Earnings Estimates Northbound
In the past two months, the Zacks Consensus Estimate for CBT's fiscal 2024 earnings has been raised by 4.3%. The same for the fiscal 2025 has also seen an upward revision of 3.9% during the same period.
CBT Outperforms Industry
In the past year, Cabot's shares have surged 41.7% against the industry’s 8.2% decline.
Image Source: Zacks Investment Research
What’s Driving Cabot?
In the fiscal third quarter, Cabot's Performance Chemicals division achieved an impressive 8.1% year-over-year sales growth, reaching $332 million. The segment’s EBIT soared 72% to $55 million, primarily due to increased volumes and a more favorable product mix, especially in the specialized carbons and fumed metal oxide lines. The upside was driven by strong demand in the automotive, infrastructure and semiconductor markets.
The Reinforcement Materials segment also benefited from higher volumes in Europe and Asia Pacific, along with improved pricing and product mix in 2024 customer agreements.
The company is optimistic about its fiscal fourth-quarter performance. It raised its fiscal 2024 adjusted EPS guidance to the range of $7.00-$7.10, calling for an increase of 30 cents at the midpoint. This revision is based on anticipated strong results from the Performance Chemicals segment, driven by higher demand and an enhanced product mix, coupled with continued strength in the Reinforcement Materials unit.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from the year-ago levels. The consensus mark for NEM’s earnings has increased 14% in the past 60 days.The stock has gained nearly 30.4% in the past year.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $6.06, indicating a rise of 27.9% from the year-ago level. CRS’s earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 15.9%. The stock has rallied nearly 124.9% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have risen nearly 79.9% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Add Cabot Stock to Your Portfolio Now
Cabot Corporation (CBT - Free Report) registered a 20.4% rise in its stock value in the past six months, fueled by strong earnings outperformance, upward revisions to earnings guidance and robust performance across its business segments.
The stock offers an attractive investment opportunity with strong growth prospects, as reflected in its Zacks Rank #2 (Buy).
Impressive Earnings Surprise History
CBT has consistently outperformed the Zacks Consensus Estimate, delivering positive earnings surprises in each of the last four quarters, with an average surprise of 8.6% over this period.
Cabot’s Strong Growth Prospects
The Zacks Consensus Estimate for CBT's fiscal 2024 earnings is pegged at $7.07, suggesting a 31.4% increase from the previous year’s tally. Earnings are projected to increase 10.6% in the fiscal 2025.
CBT’s Earnings Estimates Northbound
In the past two months, the Zacks Consensus Estimate for CBT's fiscal 2024 earnings has been raised by 4.3%. The same for the fiscal 2025 has also seen an upward revision of 3.9% during the same period.
CBT Outperforms Industry
In the past year, Cabot's shares have surged 41.7% against the industry’s 8.2% decline.
Image Source: Zacks Investment Research
What’s Driving Cabot?
In the fiscal third quarter, Cabot's Performance Chemicals division achieved an impressive 8.1% year-over-year sales growth, reaching $332 million. The segment’s EBIT soared 72% to $55 million, primarily due to increased volumes and a more favorable product mix, especially in the specialized carbons and fumed metal oxide lines. The upside was driven by strong demand in the automotive, infrastructure and semiconductor markets.
The Reinforcement Materials segment also benefited from higher volumes in Europe and Asia Pacific, along with improved pricing and product mix in 2024 customer agreements.
The company is optimistic about its fiscal fourth-quarter performance. It raised its fiscal 2024 adjusted EPS guidance to the range of $7.00-$7.10, calling for an increase of 30 cents at the midpoint. This revision is based on anticipated strong results from the Performance Chemicals segment, driven by higher demand and an enhanced product mix, coupled with continued strength in the Reinforcement Materials unit.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Zacks Rank & Other Key Picks
Some other top-ranked stocks in the Basic Materials space are Newmont Corporation (NEM - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Eldorado Gold Corporation (EGO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from the year-ago levels. The consensus mark for NEM’s earnings has increased 14% in the past 60 days.The stock has gained nearly 30.4% in the past year.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $6.06, indicating a rise of 27.9% from the year-ago level. CRS’s earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 15.9%. The stock has rallied nearly 124.9% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have risen nearly 79.9% in the past year.