Cooper-Standard Holdings Inc. CPS recently announced that it signed three agreements in 2019 to jointly develop commercial applications of its proprietary chemistry platform, Fortrex. This will enable the company to further expand its diversification strategy.
While two agreements have been signed with consumer goods firms, the third one is with an industrial goods company, bringing the total agreements to six in 2019.
The Advanced Technology Group (ATG) of Cooper-Standard will also be used for diversification purposes, which is intended to enhance and optimize the value stream of the company's manufacturing expertise in its core process for industrial and specialty applications. In addition, ATG is fueling growth through the company's applied materials science offerings, including Fortrex, which provides performance advantages over many other materials.
Moreover, the company is offering custom-formulated Fortrex material compounds and converted products for sale. The order for the first materials, likely to be delivered in 2021, is anticipated to be highly complementary to its traditional product manufacturing business.
Shares of Cooper-Standard have underperformed the industry it belongs to over the past year. During this time frame, it has declined 57.8%, as against the industry’s rise of 12.7%.
Meanwhile, Cooper-Standard is continuing at a record pace for new programs and contract awards related to recent product innovations. Besides gaining a competitive advantage over others, product technology and innovation are the key factors for winning contracts. These developments, along with the existing ones, help the company gain new customers and explore opportunities.
Zacks Rank & Stocks to Consider
Currently, Cooper-Standard carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Auto-Tires-Trucks sector, include Blue Bird Corporation BLBD, Tesla, Inc. TSLA and SPX Corporation SPXC, each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Blue Bird has an estimated earnings growth rate of 25.47% for 2020. The company’s shares have appreciated 8.9% in a year’s time.
Tesla has a projected earnings growth rate of 6,380% for the ongoing year. Its shares have gained 70.8% over the past year.
SPX has an expected earnings growth rate of 8.09% for the current year. The stock has surged 79.7% in the past year.
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