Cabot Corporation (CBT) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Cabot's stock has shown strong performance, increasing 7% over the past month and reaching a 52-week high of $103.57, with a year-to-date gain of 15.7% compared to declines in the broader Basic Materials sector and the Chemical - Diversified industry [1]. Financial Performance - Cabot has consistently exceeded earnings expectations, reporting an EPS of $1.92 against a consensus estimate of $1.74 in its latest earnings report [2]. - For the current fiscal year, Cabot is projected to achieve earnings of $6.87 per share on revenues of $4 billion, reflecting a 27.7% increase in EPS and a 1.86% increase in revenues. For the next fiscal year, expected earnings are $7.58 per share on $4.21 billion in revenues, indicating year-over-year changes of 10.43% and 5.2%, respectively [3]. Valuation Metrics - Cabot's stock trades at 14.1 times the current fiscal year EPS estimates, below the peer industry average of 17.3 times. On a trailing cash flow basis, it trades at 11.9 times compared to the peer group's average of 8.2 times. The stock has a PEG ratio of 0.95, suggesting it is not among the top value stocks [7]. Style Scores - Cabot holds a Value Score of A, along with Growth and Momentum Scores of A, resulting in a combined VGM Score of A, indicating strong performance across these metrics [6]. Zacks Rank - Cabot has a Zacks Rank of 2 (Buy), supported by rising earnings estimates. This aligns with the recommendation for investors to consider stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further stock price appreciation [8].