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Chemours (CC) Stock Up 25% in a Year: What's Driving It?

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Shares of chemicals maker, The Chemours Company CC have popped around 25% over a year. The company has also outperformed its industry's gain of roughly 10% over the same time frame.  

Chemours has a market cap of roughly $9.1 billion and average volume of shares traded in the last three months is around 1,528.9K. The company has expected long-term earnings per share growth of 15.5%, higher than the industry average of 10%.

Let's take a look into the factors that are driving this Zacks Rank #1 (Strong Buy) stock.


Driving Factors

Strong earnings performance and upbeat outlook have contributed to the rally in Chemours’ shares. Chemours saw its profits surge 98% year over year in the first quarter of 2018. Both adjusted earnings and revenues for the quarter topped the Zacks Consensus Estimate.

The company saw higher volume across all segments. Its top line in the quarter was also driven by higher global average prices in Titanium Technologies and favorable currency impact.

Factoring in solid first-quarter results and visibility into the balance of 2018, Chemours expects that adjusted EBITDA for 2018 will be at the top end of its earlier announced range of $1.7-$1.85 billion driven by sustained positive momentum across its businesses.

Chemours also expects to deliver further margin expansion throughout the balance of 2018. The company also anticipates to deliver more than $700 million in free cash flow in 2018.  

Chemours is gaining from healthy demand for Ti-Pure titanium dioxide (TiO2), sustained adoption of Opteon refrigerant and higher demand for fluoropolymers products. Higher adoption of Ti-Pure TiO2 products is driving results in the company’s Titanium Technologies division as witnessed in the first quarter. Chemours should also gain from favorable pricing and demand in the Fluoroproducts segment in 2018.

Moreover, Chemours completed its acquisition of ICOR International in April 2018. The buyout boosts its refrigerant portfolio and expands its channel access across its markets.

Chemours Company (The) Price and Consensus


Chemours Company (The) Price and Consensus | Chemours Company (The) Quote

Other Stocks to Consider

Other top-ranked stocks worth considering in the basic materials space include Westlake Chemical Corporation WLK, Celanese Corporation CE and FMC Corp. FMC, each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied roughly 76% over a year.

Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have rallied roughly 29% over a year.

FMC has an expected long-term earnings growth rate of 15.5%. The company’s shares have gained around 16% in a year.

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