Celanese Corporation CE increased its full-year 2021 outlook for adjusted earnings to $11.00-$11.50 per share. The midpoint of the latest guidance range reflects a 15% increase from the earlier range of $9.50-$10.00.
Celanese noted that its Texas and gulf coast operations were impacted by the winter storm Uri, yet its Clear Lake, Bishop and Bay City sites are operational with most units manufacturing at pre-storm levels.
The company also expects adjusted earnings of roughly $3 per share for the first quarter. It expects this momentum to continue in the middle of 2021 as increased demand for Acetyl Chain and Engineered Materials products is met. Celanese is uniquely positioned to reliably supply markets, which it projects will remain tight in mid-year post the winter storm, the company noted.
Shares of Celanese have surged 109.9% in the past year compared with 62.1% rise of the industry.
Celanese is gaining from its productivity actions, investments in high-return organic projects and strategic acquisitions. It is committed toward executing its productivity programs that include the implementation of a number of cost-reduction capital projects. The company achieved gross savings of $214 million from its productivity actions in 2020. Productivity actions are also expected to support to its margins in 2021.
The company is also seeing a recovery in demand across its end markets. Moreover, Celanese continues to actively pursue acquisitions, which are providing it opportunities for additional growth, investment and synergies.
Zacks Rank & Key Picks
Celanese currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited FSUGY, Ashland Global Holdings Inc. ASH and Impala Platinum Holdings Limited IMPUY.
Fortescue has a projected earnings growth rate of 107.8% for the current fiscal. The company’s shares have surged 149.2% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ashland has an expected earnings growth rate of 83.9% for the current fiscal. The company’s shares have gained 75.7% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 315.5% in the past year. It currently flaunts a Zacks Rank #1.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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
Ashland Global Holdings Inc. (ASH) : Free Stock Analysis Report
Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report
Fortescue Metals Group Ltd. (FSUGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research