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5 Reasons That Make LyondellBasell (LYB) a Solid Choice Now
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LyondellBasell Industries N.V.’s (LYB - Free Report) stock looks promising at the moment. 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 giant an intriguing choice for investors right now.
What Makes LYB an Attractive Pick?
Solid Rank & VGM Score: LyondellBasell currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
An Outperformer: LyondellBasell has trounced the industry over a year. The company’s shares have rallied around 28.4% over this period, compared with roughly 8% growth recorded by the industry.
Attractive Valuation: Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, LyondellBasell is currently trading at trailing 12-month EV/EBITDA multiple of 8.5, cheaper compared with the industry average of 10.2.
Superior Return on Equity (ROE): LyondellBasell’s ROE of 53.8%, as compared with the industry average of 9.9%, manifests the company’s efficiency in utilizing shareholder’s funds.
Strong Q2 & Upbeat Outlook: LyondellBasell saw its profits surge roughly 46% year over year to $1,654 million or $4.22 per share in second-quarter 2018. Adjusted earnings of $3.34 per share topped the Zacks Consensus Estimate of $2.90.
The company’s revenues also went up roughly 22% year over year to $10,206 million, also beating the Zacks Consensus Estimate of $9,111.1 million.
LyondellBasell, in its second-quarter earnings call, stated that it is well-positioned to boost earnings over the upcoming quarters on the back of operational and market improvements in Refining, strong performance in Intermediates and Derivatives, the A. Schulman buyout and the start-up of Hyperzone HDPE plant in 2019. Earnings are expected to benefit from increased profits in its refinery, which is likely to be driven by the impact of new marine fuel regulations in second-half 2019.
LyondellBasell Industries N.V. Price and Consensus
Ingevity has an expected long-term earnings growth rate of 12%. The company’s shares have rallied around 74% in a year.
Huntsman has an expected long-term earnings growth rate of 8.5%. The company’s shares have rallied around 23% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have shot up roughly 19% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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5 Reasons That Make LyondellBasell (LYB) a Solid Choice Now
LyondellBasell Industries N.V.’s (LYB - Free Report) stock looks promising at the moment. 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 giant an intriguing choice for investors right now.
What Makes LYB an Attractive Pick?
Solid Rank & VGM Score: LyondellBasell currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
An Outperformer: LyondellBasell has trounced the industry over a year. The company’s shares have rallied around 28.4% over this period, compared with roughly 8% growth recorded by the industry.
Attractive Valuation: Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, LyondellBasell is currently trading at trailing 12-month EV/EBITDA multiple of 8.5, cheaper compared with the industry average of 10.2.
Superior Return on Equity (ROE): LyondellBasell’s ROE of 53.8%, as compared with the industry average of 9.9%, manifests the company’s efficiency in utilizing shareholder’s funds.
Strong Q2 & Upbeat Outlook: LyondellBasell saw its profits surge roughly 46% year over year to $1,654 million or $4.22 per share in second-quarter 2018. Adjusted earnings of $3.34 per share topped the Zacks Consensus Estimate of $2.90.
The company’s revenues also went up roughly 22% year over year to $10,206 million, also beating the Zacks Consensus Estimate of $9,111.1 million.
LyondellBasell, in its second-quarter earnings call, stated that it is well-positioned to boost earnings over the upcoming quarters on the back of operational and market improvements in Refining, strong performance in Intermediates and Derivatives, the A. Schulman buyout and the start-up of Hyperzone HDPE plant in 2019. Earnings are expected to benefit from increased profits in its refinery, which is likely to be driven by the impact of new marine fuel regulations in second-half 2019.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. Price and Consensus | LyondellBasell Industries N.V. Quote
Other Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Ingevity Corporation (NGVT - Free Report) , Huntsman Corporation’s (HUN - Free Report) and Celanese Corporation (CE - Free Report) each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity has an expected long-term earnings growth rate of 12%. The company’s shares have rallied around 74% in a year.
Huntsman has an expected long-term earnings growth rate of 8.5%. The company’s shares have rallied around 23% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have shot up roughly 19% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>