Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Cabot (CBT) and Air Products and Chemicals (APD) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings ...

Industry Overview - The Zacks Chemicals Diversified industry is facing sluggish demand in key markets such as consumer durables and building & construction, compounded by consumer inventory destocking effects [1][4] - The industry includes manufacturers of basic chemicals, plastics, specialty chemicals, and agricultural chemicals, serving various end markets like automotive, construction, and agriculture [3] Demand Challenges - Demand weakness is particularly noted in the building & construction and consumer electronics markets, with uncertainties in the U.S. housing market affecting the construction sector [4] - A slower recovery in China, characterized by a weak property market and reduced infrastructure investments, is negatively impacting chemical demand [5] - Economic slowdowns in Europe due to high inflation and interest rates are also contributing to reduced demand for chemicals [5] Strategic Responses - Companies like DuPont, FMC, and Cabot are implementing strategic measures such as cost reductions and aggressive price hikes to navigate the challenging environment [2][6] - Actions include cutting discretionary spending and raising selling prices to counteract cost inflation, which may help sustain margins [6] Industry Performance - The Zacks Chemicals Diversified industry has underperformed compared to the S&P 500 and the broader Zacks Basic Materials sector, with a gain of only 4.5% over the past year compared to the S&P 500's 32.4% [9] - The industry currently trades at an EV/EBITDA ratio of 11.43X, below the S&P 500's 19.20X and the sector's 11.99X [10] Company Highlights - FMC is focusing on expanding its product portfolio and has seen upward revisions in earnings estimates, with a Zacks Rank of 1 (Strong Buy) [11][12] - DuPont is expected to benefit from productivity and pricing actions, with a projected earnings growth rate of around 7.5% for 2024, holding a Zacks Rank of 2 (Buy) [13][14] - Cabot is experiencing strong growth in its Performance Chemicals division, with expected earnings growth of 31.4% for fiscal 2024 and a Zacks Rank of 2 [15]

Cabot Corporation's (CBT) shares have popped around 23% over the past three months. The rally has been fueled by CBT's strong earnings performance, upward revisions to earnings guidance and robust performance across its business segments. We are positive about the company's prospects and believe that the time is right for you to add the stock to your portfolio as it looks promising and is poised to carry the momentum ahead. Let's take a look into the factors that make CBT stock a compelling choice for inves ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

Cabot Corporation's (CBT) 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 ...

The Fed kicked off the new rate cycle era by initiating a 50 basis points cut in interest rates after holding it at a 23-year high for 14 consecutive months since July 2023. This marked the first rate cut since 2020 to address slowing economic growth. The shift in monetary policy, along with uncertainty surrounding the elections, has brought back the lure for dividend investing. While several dividend stocks could provide capital appreciation, zeroing in on stocks with a history of dividend growth leads to ...

Core Insights - Cabot Corporation's shares reached a 52-week high of $110.98, closing at $107.85, with a stock appreciation of 55.8% over the past year, contrasting with a 4.3% decline in the industry [1] - The Performance Chemicals division saw sales increase by 8.1% year over year to $332 million, with EBIT rising 72% to $55 million, driven by strong demand in automotive, infrastructure, and semiconductor markets [1][2] - The Reinforcement Materials segment also experienced growth due to increased volumes in Europe and Asia Pacific, along with improved pricing and product mix [2] Financial Outlook - Cabot raised its fiscal 2024 adjusted EPS guidance to $7.00-$7.10, reflecting a 30-cent increase at the midpoint, driven by anticipated strong results from both the Performance Chemicals and Reinforcement Materials segments [2] - The Zacks Consensus Estimate for fiscal 2024 earnings is $7.07, indicating a 31.4% year-over-year increase, with expected earnings growth of 10.6% in fiscal 2025 [3] Earnings Performance - The company has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 8.6% [3] - In the past two months, the Zacks Consensus Estimate for Cabot's fiscal 2024 earnings has been revised upward by 4.3% [3] Market Position - Cabot currently holds a Zacks Rank 2 (Buy), indicating a favorable market position [4]

Have you been paying attention to shares of Cabot (CBT) ? Shares have been on the move with the stock up 8.8% over the past month. The stock hit a new 52-week high of $108.39 in the previous session. Cabot has gained 28.7% since the start of the year compared to the -3.7% move for the Zacks Basic Materials sector and the -2.3% return for the Zacks Chemical - Diversified industry. What's Driving the Outperformance? The stock has an impressive record of positive earnings surprises, as it hasn't missed our ear ...

Cabot Corporation's (CBT) shares have increased 18% in the past six months compared with the industry's growth of 0.6% and the S&P 500's appreciation of 7.8% during the same period. Image Source: Zacks Investment Research Let's look at the factors driving the stock's price movement. What's Driving Cabot? In the fiscal third quarter, Cabot's Performance Chemicals division posted robust growth, with sales climbing 8.1% year over year to $332 million. The segment's EBIT surged 72% to $55 million, driven by hig ...

Wall Street is off to a poor start in September on renewed concerns about the health of the economy and the stock market's historical performance. Amid such a backdrop, investors are increasingly exploring strategies that will help them to protect their portfolios from downside risk. And nothing seems better than the strategy of dividend investing. Picking stocks with a history of dividend growth leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend-paying s ...