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AdvanSix Stock Pops 21% in 6 Months: What's Driving the Rally?
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Key Takeaways
ASIX shares gained 21.2% the past six months, compared to the industry decline of 6.6%.
AdvanSix stock gains beat the S&P 500 rise of 3.9% during the same time period.
ASIX offers a dividend yield of 2.4%, above the S&P 500 average dividend yield of about 2%.
AdvanSix Inc.’s (ASIX - Free Report) shares have gained 21.2% over the past six months. The company has also outperformed the Zacks Chemicals Specialty industry’s 6.6% decline over the same time frame. ASIX has also topped the S&P 500’s roughly 3.9% rise over the same period.
Let’s take a look into the factors that are driving ASIX stock.
Image Source: Zacks Investment Research
ASIX Gains on Improving Nylon Demand & Favorable Prices
AdvanSix is benefiting from its differentiated product portfolio, exposure to diverse end markets and favorable demand and pricing. It is expected to gain from improved nylon demand conditions and the growth of its differentiated products. The favorable agricultural industry fundamentals also bode well for ammonium sulfate.
ASIX delivered top and bottom-line growth and cash flow improvement in the third quarter of 2024 on the back of higher year-over-year pricing, improved North American nylon industry conditions and a constructive global acetone supply and demand environment. ASIX sees global acetone supply and demand to remain balanced to tight. North American nylon industry spreads are expected to modestly improve amid stable end-market demand.
Sound Financial Health Bodes Well for AdvanSix Stock
ASIX has a healthy balance sheet and generates substantial cash flows, which allows it to drive shareholder value and fund growth initiatives. The company ended the third quarter of 2024 with cash and cash equivalents of roughly $17.3 million. Operating cash flow climbed around 175% year over year to $57.3 million while free cash flow increased by $31.1 million from the prior-year quarter to $26.8 million.
ASIX offers a healthy dividend yield of 2.4% (above the S&P 500′s average dividend yield of roughly 2%) at the current stock price. It has a five-year annualized dividend growth rate of 31.9%. The company's dividend is perceived to be safe and reliable, backed by strong cash flows and sound financial health.
Carpenter Technology beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 186% in the past year.
The Zacks Consensus Estimate for ICL Group’s current-year earnings has increased by 8.8% in the past 60 days. ICL beat the consensus estimate in each of the last four quarters with the average surprise being 18.1%.
ATI beat the consensus estimate in three of the last four quarters while missing once. In this time frame, it has delivered an earnings surprise of roughly 3.7%, on average. ATI has gained around 28% in the past year.
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AdvanSix Stock Pops 21% in 6 Months: What's Driving the Rally?
Key Takeaways
AdvanSix Inc.’s (ASIX - Free Report) shares have gained 21.2% over the past six months. The company has also outperformed the Zacks Chemicals Specialty industry’s 6.6% decline over the same time frame. ASIX has also topped the S&P 500’s roughly 3.9% rise over the same period.
Let’s take a look into the factors that are driving ASIX stock.
ASIX Gains on Improving Nylon Demand & Favorable Prices
AdvanSix is benefiting from its differentiated product portfolio, exposure to diverse end markets and favorable demand and pricing. It is expected to gain from improved nylon demand conditions and the growth of its differentiated products. The favorable agricultural industry fundamentals also bode well for ammonium sulfate.
ASIX delivered top and bottom-line growth and cash flow improvement in the third quarter of 2024 on the back of higher year-over-year pricing, improved North American nylon industry conditions and a constructive global acetone supply and demand environment. ASIX sees global acetone supply and demand to remain balanced to tight. North American nylon industry spreads are expected to modestly improve amid stable end-market demand.
Sound Financial Health Bodes Well for AdvanSix Stock
ASIX has a healthy balance sheet and generates substantial cash flows, which allows it to drive shareholder value and fund growth initiatives. The company ended the third quarter of 2024 with cash and cash equivalents of roughly $17.3 million. Operating cash flow climbed around 175% year over year to $57.3 million while free cash flow increased by $31.1 million from the prior-year quarter to $26.8 million.
ASIX offers a healthy dividend yield of 2.4% (above the S&P 500′s average dividend yield of roughly 2%) at the current stock price. It has a five-year annualized dividend growth rate of 31.9%. The company's dividend is perceived to be safe and reliable, backed by strong cash flows and sound financial health.
AdvanSix Price and Consensus
AdvanSix price-consensus-chart | AdvanSix Quote
ASIX’s Zacks Rank & Other Key Picks
ASIX currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , ICL Group Ltd (ICL - Free Report) and ATI Inc. (ATI - Free Report) . While CRS sports a Zacks Rank #1 (Strong Buy), both ICL and ATI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 186% in the past year.
The Zacks Consensus Estimate for ICL Group’s current-year earnings has increased by 8.8% in the past 60 days. ICL beat the consensus estimate in each of the last four quarters with the average surprise being 18.1%.
ATI beat the consensus estimate in three of the last four quarters while missing once. In this time frame, it has delivered an earnings surprise of roughly 3.7%, on average. ATI has gained around 28% in the past year.