U.S. Markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.83 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.11 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.46
    +2.70 (+2.55%)
     
  • Gold

    1,812.90
    +5.60 (+0.31%)
     
  • Silver

    19.85
    -0.50 (-2.44%)
     
  • EUR/USD

    1.0426
    -0.0057 (-0.5422%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • Vix

    26.70
    -2.01 (-7.00%)
     
  • GBP/USD

    1.2103
    -0.0072 (-0.5930%)
     
  • USD/JPY

    135.1750
    -0.5530 (-0.4074%)
     
  • BTC-USD

    19,044.44
    -179.18 (-0.93%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    25,935.62
    -457.42 (-1.73%)
     

Ashland (ASH) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Ashland (ASH) closed at $97.25, marking a +1.89% move from the previous day. This change lagged the S&P 500's 2.45% gain on the day. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.17%.

Heading into today, shares of the chemical company had lost 5.3% over the past month, outpacing the Basic Materials sector's loss of 9.64% and the S&P 500's loss of 5.71% in that time.

Investors will be hoping for strength from Ashland as it approaches its next earnings release. The company is expected to report EPS of $1.34, up 9.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $593.1 million, down 6.89% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.12 per share and revenue of $2.33 billion. These totals would mark changes of +36.53% and -2.05%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Ashland. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Ashland currently has a Zacks Rank of #3 (Hold).

Investors should also note Ashland's current valuation metrics, including its Forward P/E ratio of 18.65. For comparison, its industry has an average Forward P/E of 13.66, which means Ashland is trading at a premium to the group.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research