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Cabot's Stock Rises 16% in Three Months: What's Driving the Rally?
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Cabot Corporation‘s (CBT - Free Report) shares have increased 16.1% in the past three months compared with the industry and the S&P 500’s growth of 5% and 4.8%, respectively.
Image Source: Zacks Investment Research
Let’s look at the factors driving the stock’s price appreciation.
What’s Driving Cabot Stock?
Cabot's Performance Chemicals division experienced strong growth in the fiscal third quarter, with sales rising 8.1% year over year to $332 million. The segment’s EBIT saw an impressive 72% jump to $55 million, fueled by increased volumes and a favorable product mix, particularly in specialized carbons and fumed metal oxides. This growth was supported by robust demand across the automotive, infrastructure and semiconductor markets.
The Reinforcement Materials segment also posted gains, benefiting from higher volumes in Europe and Asia Pacific, improved pricing and a stronger product mix in 2024 customer agreements.
CBT remains optimistic about its fiscal fourth-quarter outlook, raising the company’s fiscal 2024 adjusted EPS guidance to $7-$7.10, marking a 30-cent increase at the midpoint. The upward revision reflects anticipated strong performance from the Performance Chemicals division and continued strength in the Reinforcement Materials segment.
The company has consistently outperformed the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 8.6%. The Zacks Consensus Estimate for fiscal 2024 earnings is currently pegged at $7.07 per share, representing a 31.4% increase year over year. Earnings are projected to grow 10.6% in fiscal 2025. In the past two months, the consensus estimate for Cabot’s fiscal 2024 earnings has been revised upward by 4.3%.
The Zacks Consensus Estimate for IAMGOLD’s current-year earnings is pegged at 41 cents per share, indicating a rise of 355.6% from the year-ago level. IAG’s earnings beat the consensus estimate in each of the trailing four quarters, with the average surprise being 200%. The stock has surged nearly 165.7% 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 trailing four quarters, with the average earnings surprise being 430.3%. The company's shares have surged nearly 103.3% in the past year.
The Zacks Consensus Estimate for Carpenter Technology’scurrent-year earnings is pegged at $6.09 per share, indicating a rise of 28.5% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 15.9%. The stock has skyrocketed nearly 135.9% in the past year.
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Cabot's Stock Rises 16% in Three Months: What's Driving the Rally?
Cabot Corporation‘s (CBT - Free Report) shares have increased 16.1% in the past three months compared with the industry and the S&P 500’s growth of 5% and 4.8%, respectively.
Image Source: Zacks Investment Research
Let’s look at the factors driving the stock’s price appreciation.
What’s Driving Cabot Stock?
Cabot's Performance Chemicals division experienced strong growth in the fiscal third quarter, with sales rising 8.1% year over year to $332 million. The segment’s EBIT saw an impressive 72% jump to $55 million, fueled by increased volumes and a favorable product mix, particularly in specialized carbons and fumed metal oxides. This growth was supported by robust demand across the automotive, infrastructure and semiconductor markets.
The Reinforcement Materials segment also posted gains, benefiting from higher volumes in Europe and Asia Pacific, improved pricing and a stronger product mix in 2024 customer agreements.
CBT remains optimistic about its fiscal fourth-quarter outlook, raising the company’s fiscal 2024 adjusted EPS guidance to $7-$7.10, marking a 30-cent increase at the midpoint. The upward revision reflects anticipated strong performance from the Performance Chemicals division and continued strength in the Reinforcement Materials segment.
The company has consistently outperformed the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 8.6%. The Zacks Consensus Estimate for fiscal 2024 earnings is currently pegged at $7.07 per share, representing a 31.4% increase year over year. Earnings are projected to grow 10.6% in fiscal 2025. In the past two months, the consensus estimate for Cabot’s fiscal 2024 earnings has been revised upward by 4.3%.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
CBT’s Zacks Rank & Other Key Picks
Cabot currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are IAMGOLD Corporation (IAG - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Carpenter Technology Corporation (CRS - 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 IAMGOLD’s current-year earnings is pegged at 41 cents per share, indicating a rise of 355.6% from the year-ago level. IAG’s earnings beat the consensus estimate in each of the trailing four quarters, with the average surprise being 200%. The stock has surged nearly 165.7% 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 trailing four quarters, with the average earnings surprise being 430.3%. The company's shares have surged nearly 103.3% in the past year.
The Zacks Consensus Estimate for Carpenter Technology’scurrent-year earnings is pegged at $6.09 per share, indicating a rise of 28.5% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 15.9%. The stock has skyrocketed nearly 135.9% in the past year.