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LyondellBasell (LYB) Gains But Lags Market: What You Should Know

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LyondellBasell (LYB) closed at $91.20 in the latest trading session, marking a +1.64% move from the prior day. This change lagged the S&P 500's 2.45% gain on the day. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.17%.

Coming into today, shares of the oil refiner and chemical company had lost 15.91% in the past month. In that same time, the Basic Materials sector lost 9.64%, while the S&P 500 lost 5.71%.

Wall Street will be looking for positivity from LyondellBasell as it approaches its next earnings report date. On that day, LyondellBasell is projected to report earnings of $4.94 per share, which would represent a year-over-year decline of 19.41%. Our most recent consensus estimate is calling for quarterly revenue of $14.35 billion, up 24.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.85 per share and revenue of $53.87 billion, which would represent changes of -1.87% and +16.66%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for LyondellBasell. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.27% higher within the past month. LyondellBasell is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that LyondellBasell has a Forward P/E ratio of 5.03 right now. For comparison, its industry has an average Forward P/E of 9.2, which means LyondellBasell is trading at a discount to the group.

Also, we should mention that LYB has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LYB's industry had an average PEG ratio of 0.95 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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