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Cabot (CBT) Expands Distribution Deal With Nexeo Solutions

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Cabot Corporation (CBT - Free Report) and Nexeo Solutions have expanded their deal to distribute the former’s fumed silica, specialty carbon, dispersion, fumed alumina and aerogel product lines in the west coast and southwest United States.

Globally, Cabot operates in 45 manufacturing facilities in 21 countries. Notably, the company’s performance material and specialty chemical product lines are used in applications across the consumer, infrastructure, environment and transportation industries.

Per the company, the latest expansion of distribution deal reinforces its shared commitment to help customers innovate products with high-quality ingredients.

Shares of Cabot have lost 24.6% in the past six months compared with the industry’s 18.4% decline.

 



In November, Cabot stated that it expects adjusted earnings per share (EPS) for fiscal 2019 in the range of $4.35-$4.75. Per the company, the Reinforcement Materials division is expected to benefit from positive 2019 customer agreements and strong market position in Asia.

The Performance Chemicals unit is projected to return to a more normalized EBIT run-rate after the large turnarounds in the fiscal fourth quarter.  The company also expects benefits from recent growth investments to materialize.

The Purification Solutions segment is expected to gain from a targeted improvement plan that is currently underway. The Specialty Fluids unit is expected to sustain the recent strong performance in fiscal 2019.

Cabot Corporation Price and Consensus

 

Cabot Corporation Price and Consensus | Cabot Corporation Quote

 

Zacks Rank & Stocks to Consider

Cabot currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space include CF Industries Holdings, Inc. (CF - Free Report) and The Mosaic Company (MOS - Free Report) , sporting a Zacks Rank #1 (Strong Buy) along with Air Products and Chemicals, Inc. (APD - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have gained 11.3% in the past year.

Mosaic has an expected long-term earnings growth rate of 7%. The company’s shares have surged 47.8% in the past year.

Air Products has an expected long-term earnings growth rate of 11.8%. Its shares have inched up 1.9% in a year’s time.

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