Investors looking for stocks in the Chemical - Diversified sector might want to consider either Johnson Matthey PLC (JMPLY) or Air Products and Chemicals (APD) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.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 proven Zacks Rank emphasizes co ...

Core Viewpoint - Johnson Matthey PLC (JMPLY) is currently outperforming its peers in the Basic Materials sector, with a year-to-date return of approximately 66.4%, significantly higher than the sector average of 25.5% [4]. Company Performance - Johnson Matthey PLC is ranked 2 (Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions to identify stocks with improving earnings outlooks [3]. - Over the past 90 days, the Zacks Consensus Estimate for JMPLY's full-year earnings has increased by 7.1%, indicating improved analyst sentiment and a stronger earnings outlook [4]. - The company is part of the Chemical - Diversified industry, which has an average year-to-date loss of 16.5%, further highlighting JMPLY's strong performance relative to its industry [6]. Industry Context - The Basic Materials sector, which includes 242 individual stocks, is currently ranked 11 in the Zacks Sector Rank [2]. - Alamos Gold (AGI), another stock in the Basic Materials sector, has also shown strong performance with a year-to-date return of 88.4% and a Zacks Rank of 1 (Strong Buy) [5]. - The Mining - Gold industry, to which Alamos Gold belongs, is ranked 48 and has experienced a year-to-date increase of 124.4% [6].

Core Insights - Johnson Matthey PLC (JMPLY) is currently viewed as a more attractive investment compared to Air Products and Chemicals (APD) for value investors seeking undervalued stocks [1][3]. Valuation Metrics - JMPLY has a forward P/E ratio of 13.03, significantly lower than APD's forward P/E of 23.01, indicating that JMPLY may be undervalued relative to APD [5]. - The PEG ratio for JMPLY is 2.92, while APD's PEG ratio is 6.17, suggesting that JMPLY offers better value when considering expected earnings growth [5]. - JMPLY's P/B ratio stands at 1.49, compared to APD's P/B ratio of 3.46, further supporting the notion that JMPLY is a more favorable investment option [6]. Investment Ratings - JMPLY holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to APD, which has a Zacks Rank of 3 (Hold) [3]. - The Value grade for JMPLY is A, while APD has a Value grade of D, highlighting JMPLY's superior valuation metrics and earnings outlook [6].

Company Overview - Galiano Gold (GAU) is part of the Basic Materials sector, which includes 236 individual stocks and currently holds a Zacks Sector Rank of 15 [2] - Galiano Gold has a Zacks Rank of 2 (Buy), indicating strong analyst sentiment and an improving earnings outlook [3] Performance Metrics - Year-to-date, Galiano Gold has gained approximately 98.4%, significantly outperforming the Basic Materials group average gain of 20.4% [4] - The consensus estimate for GAU's full-year earnings has increased by 15.9% over the past quarter, reflecting stronger analyst sentiment [3] Industry Context - Galiano Gold belongs to the Mining - Gold industry, which includes 39 companies and currently ranks 143 in the Zacks Industry Rank; this industry has gained an average of 100.5% year-to-date, indicating that GAU is slightly underperforming its industry [5] - Another stock in the Basic Materials sector, Johnson Matthey PLC (JMPLY), has also outperformed the sector with a year-to-date return of 59.3% [4][6]

Core Insights - The article compares Johnson Matthey PLC (JMPLY) and Air Products and Chemicals (APD) to determine which stock is more attractive to value investors [1] - JMPLY has a stronger earnings outlook and a better Zacks Rank compared to APD, indicating a more favorable investment opportunity [3] Valuation Metrics - JMPLY has a forward P/E ratio of 12.60, significantly lower than APD's forward P/E of 23.98, suggesting JMPLY is undervalued [5] - The PEG ratio for JMPLY is 3.10, while APD's PEG ratio is 6.43, indicating JMPLY offers better value relative to its expected earnings growth [5] - JMPLY's P/B ratio is 1.43 compared to APD's P/B of 3.61, further supporting the conclusion that JMPLY is the superior value option [6] Value Grades - JMPLY holds a Value grade of A, while APD has a Value grade of D, highlighting JMPLY's stronger position in terms of valuation metrics [6]

Investment Rating - The investment rating for the basic chemical industry is "Positive" (maintained) [1] Core Insights - The National Development and Reform Commission (NDRC) emphasized the need to curb "involution" in competition, which is expected to enhance the market share of leading enterprises in the chemical industry [4][21] - The average capital expenditure to depreciation ratio for listed companies in the basic chemical sector has been declining since 2023, indicating that the cycle of significant capital expenditure is nearing its end [4][23] - The report highlights that the chemical industry is undergoing a transformation, with policies aimed at promoting high-quality development and encouraging mergers and acquisitions to eliminate excess capacity [4][22] Summary by Sections Chemical Market Tracking and Event Commentary - The chemical industry index underperformed the CSI 300 index by 1.05% this week [17] - Among 545 stocks in the chemical sector, 30.64% saw weekly gains while 65.87% experienced declines [17] Key Product Tracking - The price of polyester filament has increased, with POY market average price rising by 314.29 CNY/ton to 7050 CNY/ton [27][28] - Phosphate rock prices remained stable, while the price of monoammonium phosphate saw a slight increase of 1.34% [54][56] Industry News - Honeywell announced a $2.4 billion acquisition of the catalyst business from Johnson Matthey [5] - The NDRC's recent announcements are expected to further support the market share growth of high-quality chemical leaders [4][21] Recommended and Beneficiary Stocks - Recommended stocks include leading chemical companies such as Wanhua Chemical, Hualu Hengsheng, and Hengli Petrochemical [6][23] - Beneficiary stocks include satellite chemical and various companies across the chemical, fiber, and agricultural sectors [24][25]

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Group 1 - Honeywell is nearing a deal to acquire Johnson Matthey's catalyst business for £1.8 billion [1]

Financial Data and Key Metrics Changes - The company reported a 3% decrease in sales on a continuing basis, amounting to GBP1.7 billion, and a 4% decline in underlying operating profit [20][23] - Free cash flow was GBP347 million, driven by proceeds from the disposal of Medical Device Components [21] - Net debt closed at GBP783 million, lower than year-end, with a net debt to EBITDA ratio of 1.4 times [22][36] Business Line Data and Key Metrics Changes - Clean Air sales decreased by 7% to GBP1.2 billion, impacted by weak end markets and platform losses [23][30] - PGM Services sales fell by 9% to GBP207 million, primarily due to lower refining volumes and trading business performance [24][31] - Catalyst Technologies experienced a 20% increase in sales to GBP336 million, with operating profit rising by 43% to GBP50 million [24][33] - Hydrogen Technologies saw sales decline to GBP20 million, resulting in an operating loss of GBP26 million [35] Market Data and Key Metrics Changes - The automotive environment remains challenging, with global vehicle production declining across both light and heavy-duty segments [30] - The company expects a strong second half for PGM Services, driven by higher volumes and increased metal recoveries [39] Company Strategy and Development Direction - The company is focused on transformation and efficiency improvements, with a target of GBP200 million in cost savings for the year [26][60] - Strategic milestones are on track, with a focus on Clean Air and Catalyst Technologies as key growth drivers [44][45] - The company is pursuing opportunities in sustainable technologies, with a strong pipeline of projects [49][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging macroeconomic backdrop but emphasizes control over internal transformation efforts [7][8] - Confidence in a strong second half is based on expected improvements in PGM Services and ongoing transformation benefits [6][39] - The company maintains its full-year guidance, expecting at least mid-single-digit growth in operating performance [41] Other Important Information - The company is in the midst of a GBP250 million share buyback program, with half completed by September [22][18] - The new PGM refinery is on budget and on schedule to start commissioning by the end of '25-'26, expected to improve efficiency and reduce working capital [59][95] Q&A Session Summary Question: Visibility on auto markets and guidance for H2 - Management indicated that the decline in Clean Air sales was roughly half due to market conditions and half due to platform losses, with no significant volume recovery expected in the auto market [69][70] Question: Level of R&D in Clean Air and regulatory backdrop - R&D spend for Clean Air is around GBP100 million, primarily focused on new emissions regulations, with expectations for a significant decline in R&D costs post-regulation updates [77][78] Question: Ranking of recovery elements in PGM Services - Management identified refining volumes, life science technology volumes, metal recoveries, and efficiencies as key elements for recovery, with low risk associated with these factors [81][82] Question: Context on US tariffs and localized production - The company has a diversified manufacturing footprint in the US, minimizing the impact of potential tariffs, with only about 5% of sales affected by Canada and Mexico [86][88]

Investors interested in Chemical - Diversified stocks are likely familiar with Johnson Matthey PLC (JMPLY) and FMC (FMC) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our ...