Cabot (CBT) Offers PROPEL E8 Tailored Reinforcing Carbon Black
Cabot Corporation CBT has announced the global launch of its new PROPEL E8 tailored reinforcing carbon black, which is designed to deliver enhanced tread durability at low rolling resistance for high-performance tire tread applications. This innovative device addresses the specific issues faced by electric vehicles ("EVs"), which are heavier and have more torque than standard internal combustion engines ("ICE").
With the surge in preference for EVs worldwide, there is a growing demand for more durable and efficient tires. Automotive tire producers are seeking novel ideas to increase the efficiency of EV tires and extend their lifespan. The greater weight and torque of EVs have been demonstrated to increase tire wear by up to 30% in comparison with their ICE equivalents. As a result, the number of end-of-life tires ("EOLTs") on an EV increases with time, as does the total cost of ownership. Cabot's PROPEL E8 solution addresses such difficulties by combining reduced rolling resistance with better tread durability to extend tire life, maximize range and reduce overall tire waste.
The treads of EV tires demand a performance balance that is difficult to achieve with typical, high surface area ASTM carbon blacks. The PROPEL E8 solution allows greater rolling resistance compared with ASTM N200 and N100 carbon black grades. It also has high rigidity and modulus, as well as an abrasion resistance comparable to ASTM N100 class carbon black.
The PROPEL E8 grade complements the existing solutions in the company’s PROPEL E portfolio, which include PROPEL E3, PROPEL E6 and PROPEL E7, all of which can provide performance and sustainability benefits to a variety of high-performance tire formulations. Cabot's PROPEL E series is made up of high surface area, medium structure reinforcing carbon blacks that are specifically engineered to increase the overall sustainability of the tire value chain. This allows tread formulators to deliver tires with low rolling resistance for maximum range while also improving tread durability to extend tire life span, resulting in fewer EOLTs.
Shares of Cabot have gained 19.9% over the past year against the industry’s 3.9% decline.
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Cabot stated that adjusted earnings per share for fiscal 2024 are expected to be in the $6.30 to $6.80 range, implying a rise of 22% at the midpoint compared with fiscal 2023.
The company had an encouraging start to the fiscal year and underlying estimates about its sectors remain consistent with the previous quarter.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Zacks Rank & Key Picks
Cabot currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Denison Mines Corp. DNN, Carpenter Technology Corporation CRS and Hawkins, Inc. HWKN.
Denison Mines sports a Zacks Rank #1 (Strong Buy), at present. DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have surged 96.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently sports a Zacks Rank of 1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 12.2%. The company’s shares have soared 64.8% in the past year.
The consensus estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, carrying a current Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 77.5% in the past year.
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