Why You Should Add Chemours (CC) Stock to Your Portfolio Now

The Chemours Company’s CC shares have shot up roughly 26% over the past six months. It is benefiting from higher demand for Opteon in mobile applications, strong execution and cost-cutting measures.

We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.

Chemours currently carries a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.

Let's see what makes this chemical maker an attractive investment option at the moment.

Price Performance

Shares of Chemours have rallied 35.3% year to date against the 8.2% rise of its industry. It has also outperformed the S&P 500’s 10.9% rise over the same period.

Zacks Investment ResearchZacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Estimates Northbound

Over the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 16.9%. The consensus estimate for 2022 has also been revised 10% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.

Positive Earnings Surprise History

Chemours has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 55.2%, on average.

Attractive Valuation

Valuation looks attractive as Chemours’ shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.

Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, Chemours is currently trading at trailing 12-month EV/EBITDA multiple of 10.45, cheaper compared with the industry average of 11.53.

Superior Return on Equity (ROE)

ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Chemours is 43.3%, above the industry’s level of 11.3%.

Growth Drivers in Place

Chemours is benefiting from increasing adoption of the Opteon platform and growing applications of fluoropolymers, especially in automotive, electronics and energy end-markets. The company remains is committed toward driving Opteon adoption. The company is seeing higher demand for Opteon in mobile applications. It is ramping up production at the new low-cost Opteon Corpus Christi facility.

The company also stands to gain from its efforts to reduce costs. It is undertaking actions to cut costs by reducing overhead, discretionary spend and capital expenditures. The company, in 2020, benefited from its $160-million cost-management program aimed toward enhancing financial flexibility.

The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are also expected to support margins in 2021.

The Chemours Company Price and Consensus

The Chemours Company Price and ConsensusThe Chemours Company Price and Consensus
The Chemours Company Price and Consensus

The Chemours Company price-consensus-chart | The Chemours Company Quote

Stocks to Consider

Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, Cabot Corporation CBT and Impala Platinum Holdings Limited IMPUY.

Nucor has a projected earnings growth rate of 344.9% for the current year. The company’s shares have surged around 127% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have rallied 56% in the past year. It currently carries a Zacks Rank #2.

Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 129% in the past year. It currently carries a Zacks Rank #2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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

Nucor Corporation (NUE) : Free Stock Analysis Report

Cabot Corporation (CBT) : Free Stock Analysis Report

Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report

The Chemours Company (CC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

Comments are closed.

If you would like to receive our free newsletter via email, simply enter your email address below & click subscribe.

MOST ACTIVE MINING STOCKS

 Daily Gainers

 Silver Spruce Resources Inc. SSE.V +100.00%
 Manhattan Corporation Limited MHC.AX +100.00%
 Azincourt Energy Corp. AAZ.V +50.00%
 Romios Gold Resources Inc. RG.V +50.00%
 Adavale Resources Limited ADD.AX +50.00%
 MRG Metals Limited MRQ.AX +33.33%
 Terrain Minerals Limited TMX.AX +33.33%
 Casa Minerals Inc. CASA.V +30.00%
 Full Metal Minerals Ltd. FMM.V +28.57%
 Canstar Resources Inc. ROX.V +28.57%