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Cabot's Shares Rise 18% in Six Months: What's Driving the Stock?
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Cabot Corporation‘s (CBT - Free Report) shares have increased 18% in the past six months compared with the industry’s growth of 0.6% and the S&P 500’s appreciation of 7.8% during the same period.
Image Source: Zacks Investment Research
Let’s look at the factors driving the stock’s price movement.
What’s Driving Cabot?
In the fiscal third quarter, Cabot's Performance Chemicals division posted robust growth, with sales climbing 8.1% year over year to $332 million. The segment’s EBIT surged 72% to $55 million, driven by higher volumes and a favorable product mix, particularly in specialized carbons and fumed metal oxides. The upside was fueled by strong automotive, infrastructure and semiconductor market demand.
The Reinforcement Materials segment also registered gains, benefiting from increased volumes in Europe and Asia Pacific and better pricing and product mix in 2024 customer agreements.
It is optimistic about its fiscal fourth-quarter outlook. CBT raised its fiscal 2024 adjusted EPS guidance to $7.00-$7.10, suggesting a 30-cent increase at the midpoint. The upward revision reflects anticipated strong results from the Performance Chemicals division and ongoing strength in the Reinforcement Materials segment.
Cabot’s earnings have consistently surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the earnings surprise being 8.6%, on average. The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $7.07, indicating a 31.4% year-over-year increase, with earnings expected to grow 10.6% in the fiscal 2025. In the past two months, the Zacks Consensus Estimate for Cabot’s fiscal 2024 earnings has been revised upward by 4.3%.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82 per share, indicating a rise of 75% from the year-ago level. The consensus mark for NEM’s earnings has increased 14% in the past 60 days.The stock has gained nearly 34.1% in the past year.
The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the last four quarters, the average earnings surprise being 15.9%. The stock has rallied nearly 117.8% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the last four quarters, with the average surprise being 430.3%. The company's shares have surged nearly 69% in the past year.
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Cabot Corporation‘s (CBT - Free Report) shares have increased 18% in the past six months compared with the industry’s growth of 0.6% and the S&P 500’s appreciation of 7.8% during the same period.
Image Source: Zacks Investment Research
Let’s look at the factors driving the stock’s price movement.
What’s Driving Cabot?
In the fiscal third quarter, Cabot's Performance Chemicals division posted robust growth, with sales climbing 8.1% year over year to $332 million. The segment’s EBIT surged 72% to $55 million, driven by higher volumes and a favorable product mix, particularly in specialized carbons and fumed metal oxides. The upside was fueled by strong automotive, infrastructure and semiconductor market demand.
The Reinforcement Materials segment also registered gains, benefiting from increased volumes in Europe and Asia Pacific and better pricing and product mix in 2024 customer agreements.
It is optimistic about its fiscal fourth-quarter outlook. CBT raised its fiscal 2024 adjusted EPS guidance to $7.00-$7.10, suggesting a 30-cent increase at the midpoint. The upward revision reflects anticipated strong results from the Performance Chemicals division and ongoing strength in the Reinforcement Materials segment.
Cabot’s earnings have consistently surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the earnings surprise being 8.6%, on average. The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $7.07, indicating a 31.4% year-over-year increase, with earnings expected to grow 10.6% in the fiscal 2025. In the past two months, the Zacks Consensus Estimate for Cabot’s fiscal 2024 earnings has been revised upward by 4.3%.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Zacks Rank & Other Stocks to Consider
Cabot currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Newmont Corporation (NEM - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Eldorado Gold Corporation (EGO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82 per share, indicating a rise of 75% from the year-ago level. The consensus mark for NEM’s earnings has increased 14% in the past 60 days.The stock has gained nearly 34.1% in the past year.
The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the last four quarters, the average earnings surprise being 15.9%. The stock has rallied nearly 117.8% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the last four quarters, with the average surprise being 430.3%. The company's shares have surged nearly 69% in the past year.