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7 Reasons that Make Chemours (CC) a Solid Choice Right Now

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The Chemours Company’s (CC - Free Report) stock looks promising at the moment. The company has seen its shares pop around 99% year to date. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.

Let’s delve deeper into the factors that make this chemical company an attractive investment option.

What Working in Favor of Chemours?

Solid Rank & VGM Score:
Chemours currently has a Zacks Rank #1 (Strong Buy) and a Value Growth Momentum Score (VGM Score) of ‘A’. Our research shows that stocks with a VGM Score of ‘A’ or ‘B’ combined with a Zacks Rank #1 or #2 (Buy), offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.

Above the Industry: Chemours has significantly outperformed the Zacks categorized Chemicals-Diversified industry over a year. The company’s shares have shot up around 393.9% over this period, compared with roughly 20.6% gain recorded by the industry.



 

Upbeat Outlook: Chemours, in May, raised its outlook for full-year 2017 on the back of strong first-quarter results. The company now sees its adjusted EBITDA for 2017 to be in a band of $1.15 billion to $1.25 billion compared with its earlier view of over $1 billion.

Chemours also envisions strong performance for both Ti-Pure titanium dioxide and Opteon refrigerants. It is seeing healthy demand for these products and expects earnings in first-half and second-half 2017 to be more balanced than what it had witnessed last year. The company also noted that it is well placed for the balance of 2017 as it remains focused on strengthening its businesses and will benefit from favorable market conditions.

Estimates Northbound: Annual estimates for Chemours have moved north over the past three months, reflecting analysts’ confidence on the stock. Over this period, the Zacks Consensus Estimate for 2017 has increased by around 15.5% to $3.35 per share. The Zacks Consensus Estimate for 2018 has also moved up 13.3% over the same timeframe to $4.00.

Positive Earnings Surprise History: Chemours has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in three the trailing four quarters, delivering a positive average earnings surprise of 39.82%.

Solid Growth Prospects: The Zacks Consensus Estimate for earnings for 2017 for Chemours is currently pegged at $3.35, reflecting an expected year-over-year growth of a staggering 228.4%. Moreover, earnings are expected to register a 19.4% growth in 2018. The stock also has a long-term (3-5 years) expected expected earnings per share (EPS) growth rate of roughly 15.5%, higher than the industry average of 9.3%.

Superior Return on Equity (ROE): Chemours’ ROE of 125.7%, as compared with the industry average of 22.8%, manifests the company’s efficiency in utilizing shareholder’s funds.

Some Other Stocks to Consider

Other well-placed companies in the chemical space include Koppers Holdings Inc. (KOP - Free Report) , Hitachi Chemical Company, Ltd. and Albemarle Corporation (ALB - Free Report) . While both Koppers and Hitachi Chemical carry a Zacks Rank #1, Albemarle is a Zacks Rank #2 stock. You can see the complete list of today’s Zacks #1 Rank stocks here.

Koppers has an expected long-term earnings growth of 18%.

Hitachi Chemical has an expected long-term earnings growth of 5%.

Albemarle has an expected long-term earnings growth of 14.5%.

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