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FMC Corp (FMC) Shares Rally 28% in 6 Months: What's Driving It?

Shares of FMC Corporation FMC have popped 28% over the past six months. The company has also outperformed its industry’s rise of 20.1% over the same time frame. It has also topped the S&P 500’s roughly 3% rise over the same period.

Let’s take a look into the factors that are driving this Zacks Rank #3 (Hold) stock.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

What’s Going in FMC’s Favor?

FMC Corp is gaining from healthy demand for its industry leading products, driven by strong global agricultural market fundamentals. It is well placed to capitalize on the underlying strength in global crop protection markets thanks to high commodity prices. The strong demand environment coupled with the company’s price increase actions is driving its top line.

The company, in its third-quarter call, raised its revenue outlook for 2022 to the range of $5.6-$5.8 billion (from $5.5-$5.7 billion), indicating a rise of 13% at the midpoint from 2021 levels. Sales are expected to be driven by higher volumes and prices in all regions partly offset by foreign currency headwinds. The company also now expects adjusted earnings per share for 2022 in the range of $7.10-$7.60, suggesting an increase of 7% at the midpoint from the 2021 level.

FMC Corp also sees fourth-quarter revenues in the range of $1.42-$1.62 billion, reflecting an 8% rise at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $2.05-$2.55 per share, representing a rise of 9% at the midpoint from the prior-year quarter’s levels. It also expects adjusted EBITDA in the range of $395-$455 million for the quarter, representing a rise of 15% at the midpoint from the prior-year quarter’s levels.

The acquisition of BioPhero ApS, a Denmark-based pheromone research and production company, also adds biologically produced state-of-the-art pheromone insect control technology to the company’s product portfolio and R&D pipeline, highlighting FMC's role as a leader in delivering innovative and sustainable crop protection solutions.

FMC Corp also remains focused on boosting its market position and strengthening its product portfolio. It is investing in technologies and products as well as new launches to enhance value to the farmers. New products launched in Europe, North America and Asia are gaining significant traction and are contributing to volume growth. Product introductions are expected to support the company’s results.

FMC Corporation Price and Consensus

 

FMC Corporation Price and Consensus
FMC Corporation Price and Consensus

FMC Corporation price-consensus-chart | FMC Corporation Quote

 

Stocks to Consider

Better-ranked stocks worth considering in the basic materials space include Olympic Steel, Inc. ZEUS, Commercial Metals Company CMC and Nucor Corporation NUE.

Olympic Steel currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for ZEUS's current-year earnings has been revised 4.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Olympic Steel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 25.4%, on average. ZEUS has rallied around 40% in a year.

Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10.2% upward in the past 60 days.

Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 62% in a year.

Nucor currently carries a Zacks Rank #1. The company has a projected earnings growth rate of 21.5% for the current year.

Nucor’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 3.9%, on average.  NUE has rallied roughly 41% in a year.

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Nucor Corporation (NUE) : Free Stock Analysis Report

Commercial Metals Company (CMC) : Free Stock Analysis Report

FMC Corporation (FMC) : Free Stock Analysis Report

Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report

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