AkzoNobel (AKZOY) Up 17% YTD: What's Driving the Stock?
AkzoNobel N.V.’s RS shares have gained 17% year to date. The company has also outperformed its industry’s decline of 1.6% over the same time frame. Moreover, it has topped the S&P 500’s 15.9% rise over the same period.
Let’s dive into the factors behind this Zacks Rank #1 (Strong Buy) stock’s price appreciation.
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What’s Going in AkzoNobel’s Favor?
AkzoNobel remains exposed to pressure on volumes from the ongoing macro-economic uncertainties. However, it is taking actions to manage margins, improve operational efficiency, reduce costs, normalize working capital and de-leverage its balance sheet.
The company is also taking measures to improve its operations, grow through strategic acquisitions and deliver innovative solutions to customers. Its vast geographic footprint and leading positions in many market segments provide it opportunities for growth amid a challenging macro-economic landscape. AKZOY further expanded its significant presence in Latin America with the acquisition of Colombia-based paints and coatings company, Grupo Orbis in 2022. It also has a strong foothold in the South Asia Pacific region.
Moreover, AkzoNobel sees its cost-cutting actions to mitigate the sustained pressure from inflation in operating costs this year. Lower raw material costs are also expected to favorably impact AKZOY’s profitability in 2023. The company’s supply-chain improvement initiatives and actions to manage working capital are expected to drive cash generation and strengthen its balance sheet.
Over the past two months, the Zacks Consensus Estimate for AkzoNobel for 2023 has increased around 2.9%. The consensus estimate for 2024 has also been revised 3.7% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
The Zacks Consensus Estimate for earnings for 2023 for AkzoNobel is currently pegged at $1.44, reflecting an expected year-over-year growth of 67.4%. Earnings are also expected to register a 16% growth in 2024.
Akzo Nobel NV Price and Consensus
Akzo Nobel NV price-consensus-chart | Akzo Nobel NV Quote
Stocks to Consider
Other top-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation CRS, Hawkins, Inc. HWKN and Alamos Gold Inc. AGI.
The Zacks Consensus Estimate for current fiscal-year earnings for CRS is currently pegged at $3.48, implying year-over-year growth of 205.3%. Carpenter Technology currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 10%, on average. The stock has rallied around 72% in a year.
Hawkins currently carrying a Zacks Rank #1. It has a projected earnings growth rate of 18.9% for the current year.
Hawkins has a trailing four-quarter earnings surprise of roughly 25.6%, on average. HWKN shares are up around 57% in a year.
Alamos Gold currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for AGI's current-year earnings has been revised 13.2% upward over the past 60 days.
The Zacks Consensus Estimate for current-year earnings for Alamos Gold is currently pegged at 43 cents, implying year-over-year growth of 53.6%. AGI shares have gained around 54% in a year.
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Hawkins, Inc. (HWKN) : Free Stock Analysis Report
