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Axalta Coating Sys (NYSE:AXTA) Stock, Rapport sur les intérêts à découvert

Axalta Coating Sys

Axalta Coating Systems Ltd is a manufacturer, marketer and distributor of high-performance coatings systems. It operates in two segments, The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial. The Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The company operates in the geographic areas of North America, EMEA countries, Asia-Pacific and Latin America.

Axalta Coating Systems Ltd. Common Shares

Axalta Coating Systems Ltd

AXALTA COATING SYSTEMS ORD

FMC Corporation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fmc#NYSE">FMC</a>) stock looks promising at the moment. It benefits from efforts to expand its product portfolio through new product launches and its restructuring actions.
Let&#39;s see what makes FMC stock a compelling investment option at the moment.
<h2>FMC Stock Outperforms Industry</h2>
FMC has outperformed the industry it belongs to over the past three months. The company&#39;s shares have gained 13.8% compared with a 7.7% rise of its industry.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/c7/80480.jpg?v=1918707670" />
Image Source: Zacks Investment Research
<h2>FMC&#39;s Valuation Looks Attractive</h2>
FMC&#39;s attractive valuation should lure investors seeking value. The stock is currently trading at a forward 12-month earnings multiple of 14.52X, representing a roughly 12.4% discount when stacked up with the industry average of 16.58X. FMC also has a Value Score of B.
<h2>FMC&#39;s Earnings Estimates Going Up</h2>
Earnings estimates for FMC have been going up over the past 60 days. The Zacks Consensus Estimate for 2024 has increased by 0.6%. The consensus estimate for 2025 has also been revised 3.5% upward over the same time frame.
<h2>New Products, Restructuring Actions Aid FMC Stock</h2>
FMC remains focused on strengthening its product portfolio. It is investing in technologies as well as new product launches to enhance value to the farmers. New products launched in Europe, North America and Asia are gaining significant traction. Product introductions are expected to support the company&#39;s results this year.
FMC generated $590 million in sales in 2023 from new products launched in the past five years. It expects revenues from new products to grow by roughly $200 million in 2024. It expects a significant amount of volume growth to come from new products in the second half of 2024. FMC is seeing strong gains in new products including Coragen eVo and Premio Star insecticides and the Onsuva fungicide in Latin America.
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&#39;s product portfolio and R&amp;D pipeline, highlighting FMC&#39;s role as a leader in delivering innovative and sustainable crop protection solutions.
The company is also expected to benefit from reduced input costs, favorable product mix and its cost-control actions. It benefited from favorable input costs in the second quarter of 2024. FMC is also making progress with its global restructuring and cost-reduction program. It sees benefits from restructuring to contribute $75-$100 million to full-year 2024 adjusted EBITDA, net of inflation.
<div class="chart_embed">
<h3>FMC Corporation Price and Consensus</h3>
<img alt="FMC Corporation Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/17/1728291628.png" style="height:265px; width:576px" title="" />
FMC Corporation price-consensus-chart | FMC Corporation Quote
</div>
<h2>FMC&#39;s Zacks Rank &amp; Other Key Picks</h2>
FMC currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space are IAMGOLD Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iag#NYSE">IAG</a>), Cabot Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cbt#NYSE">CBT</a>) and Axalta Coating Systems Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axta#NYSE">AXTA</a>). While IAMGOLD sports a Zacks Rank #1 (Strong Buy), Cabot and Axalta Coating carry a Zacks Rank #2.
The Zacks Consensus Estimate for IAMGOLD&#39;s current-year earnings has increased by 45.4% in the past 60 days. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 132% in the past year.
The consensus estimate for Cabot&#39;s current fiscal year earnings is pegged at $7.07 per share, indicating a year-over-year rise of 31.4%. The consensus estimates for CBT&#39;s current-year earnings has increased by 4.3% in the past 60 days. The company&#39;s shares have rallied roughly 61% in the past year.
The Zacks Consensus Estimate for Axalta Coating&#39;s current year earnings is pegged at $2.07, indicating a rise of 31.9% from year-ago levels. The Zacks Consensus Estimate for AXTA&#39;s current year earnings has increased 2.5% in the past 60 days. The stock has gained around 32% in the past year.
<a href="https://www.zacks.com/stock/news/2346902/here-s-why-you-should-add-fmc-stock-to-your-portfolio-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2346902">To read this article on Zacks.com click here.</a>

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AXTA

Here's Why You Should Add FMC Stock to Your Portfolio Now

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market&#39;s attention and produce exceptional returns. But finding a great growth stock is not easy at all.
That&#39;s because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it&#39;s pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score, which looks beyond the traditional growth attributes to analyze a company&#39;s real growth prospects.
Axalta Coating Systems (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axta#NYSE">AXTA</a>) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this high-performance coating system maker is a great growth pick right now, we have highlighted three of the most important factors below:
<h2>Earnings Growth</h2>
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Axalta Coating Systems is 1.3%, investors should actually focus on the projected growth. The company&#39;s EPS is expected to grow 31.5% this year, crushing the industry average, which calls for EPS growth of 13.7%.
<h2>Impressive Asset Utilization Ratio</h2>
Asset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.
Right now, Axalta Coating Systems has an S/TA ratio of 0.73, which means that the company gets $0.73 in sales for each dollar in assets. Comparing this to the industry average of 0.7, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Axalta Coating Systems looks attractive from a sales growth perspective as well. The company&#39;s sales are expected to grow 2.2% this year versus the industry average of 0.7%.
<h2>Promising Earnings Estimate Revisions</h2>
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Axalta Coating Systems. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.
<h2>Bottom Line</h2>
Axalta Coating Systems has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
This combination indicates that Axalta Coating Systems is a potential outperformer and a solid choice for growth investors.
<a href="https://www.zacks.com/stock/news/2334191/axalta-coating-systems-axta-is-an-incredible-growth-stock-3-reasons-why?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_11_growth-2334191">To read this article on Zacks.com click here.</a>

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Axalta Coating Systems is an Incredible Growth Stock: 3 Reasons Why

During the last three months, 7 analysts shared their evaluations of Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>), revealing diverse outlooks from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Axalta Coating Sys, revealing an average target of $41.71, a high estimate of $44.00, and a low estimate of $38.00. Marking an increase of 4.64%, the current average surpasses the previous average price target of $39.86. 
<img src="https://www.benzinga.com/files/images/story/2024/1722891681_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The standing of Axalta Coating Sys among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Arun Viswanathan</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$44.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Jeffrey Zekauskas</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$41.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Aleksey Yefremov</td>
<td>Keybanc</td>
<td>Raises</td>
<td>Overweight</td>
<td>$44.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Ghansham Panjabi</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$42.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Michael Leithead</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$42.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Joshua Spector</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$38.00</td>
<td>$39.00</td>
</tr>
<tr>
<td>John Roberts</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$41.00</td>
<td>$38.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Axalta Coating Sys. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Axalta Coating Sys compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for Axalta Coating Sys's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
For valuable insights into Axalta Coating Sys's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/AXTA/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Axalta Coating Sys analyst ratings.</a>
<h2>Get to Know Axalta Coating Sys Better</h2>
Axalta Coating Systems Ltd is a manufacturer, marketer and distributor of high-performance coatings systems. It operates in two segments, The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial. The Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The company operates in the geographic areas of North America, EMEA countries, Asia-Pacific and Latin America.
<h3>Axalta Coating Sys: Delving into Financials</h3>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Axalta Coating Sys's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 4.4%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.
Net Margin: Axalta Coating Sys's net margin excels beyond industry benchmarks, reaching 8.29%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 6.39%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Axalta Coating Sys's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.56% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a high debt-to-equity ratio of 2.03, Axalta Coating Sys faces challenges in effectively managing its debt levels, indicating potential financial strain.
<h2>What Are Analyst Ratings?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Key Takeaways From Axalta Coating Sys Analyst Ratings

RBC Capital analyst Arun Viswanathan maintains Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>) with a Outperform and raises the price target from $42 to $44.

Price Target

RBC Capital Maintains Outperform on Axalta Coating Sys, Raises Price Target to $44

JP Morgan analyst Jeffrey Zekauskas maintains Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>) with a Overweight and raises the price target from $40 to $41.

JP Morgan Maintains Overweight on Axalta Coating Sys, Raises Price Target to $41

Keybanc analyst Aleksey Yefremov maintains Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>) with a Overweight and raises the price target from $40 to $44.

Keybanc Maintains Overweight on Axalta Coating Sys, Raises Price Target to $44

Baird analyst Ghansham Panjabi maintains Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>) with a Outperform and raises the price target from $40 to $42.

Baird Maintains Outperform on Axalta Coating Sys, Raises Price Target to $42

Barclays analyst Michael Leithead maintains Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>) with a Overweight and raises the price target from $40 to $42.

Barclays Maintains Overweight on Axalta Coating Sys, Raises Price Target to $42

Guidance

Axalta Coating Raises FY24 Adj EPS Outlook To ~$2.05 (From $1.90 - $2.00 Prior), Vs. $1.98 Estimate

Axalta Q3 Outlook: Sales Growth Of Flat to +Low-Single-Digits%, Adj. EPS ~$0.50 (In Line With Est.), Adj. EBITDA $275M

Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>) reported quarterly earnings of $0.57 per share which beat the analyst consensus estimate of $0.51 by 11.76 percent. The company reported quarterly sales of $1.351 billion which beat the analyst consensus estimate of $1.340 billion by 0.82 percent. This is a 4.40 percent increase over sales of $1.294 billion the same period last year.

Axalta Coating Sys Q2 2024 Adj. EPS $0.57 Beats $0.51 Estimate, Sales $1.351B Beat $1.340B Estimate

CF Industries Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cf#NYSE">CF</a>) is poised to gain from higher nitrogen fertilizer demand in major markets and lower natural gas costs amid headwinds from softer nitrogen prices.
The company&#39;s shares have declined 4.1% over a year compared with a 25.3% decline of its industry.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b7/70849.jpg?v=912933296" />
Image Source: Zacks Investment Research
Let&#39;s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
<h3>CF Gains on Healthy Nitrogen Demand, Lower Gas Costs</h3>
CF Industries is benefiting from rising global demand for nitrogen fertilizers, driven by significant agricultural demand. Industrial demand for nitrogen has also recovered from the pandemic-related disruptions. The company sees global demand to remain strong in the near future due to recovering industrial demand and farmer economics.
High levels of corn planted acres, low nitrogen channel inventories and favorable farm economics are expected to drive demand for nitrogen in North America. Demand for urea is also expected to remain strong in Brazil and India. Demand in India is expected to be driven by an uptick in domestic production on the back of higher operating rates and favorable weather conditions.
CF also stands to benefit from lower natural gas prices. It witnessed a significant decline in natural gas costs in the first quarter of 2024. The average cost of natural gas fell to $3.19 per MMBtu in the quarter from $6.62 per MMBtu in the year-ago quarter. Lower natural gas costs led to a decline in the company&#39;s cost of sales. The benefits of reduced gas costs are expected to continue in the second quarter of 2024.
Moreover, CF remains committed to boosting shareholders&#39; value by leveraging strong cash flows. In the first quarter of 2024, the company repurchased 4.3 million shares for $347 million. The current $3 billion share repurchase program had around $2.2 billion remaining at the end of the first quarter. Earlier this year, the company also announced a 25% increase in quarterly dividend to 50 cents per share.
<h3>Weaker Nitrogen Prices Weigh on Margins</h3>
CF is exposed to headwinds from softer nitrogen prices. Global nitrogen prices have declined since the beginning of 2023. Higher global supply availability driven by higher global operating rates due to lower global energy costs has resulted in a decline in prices. Lower average selling prices weighed on CF&#39;s top line in the first quarter.
Selling prices fell in the quarter as decreased global energy costs reduced the global market clearance price required to meet global demand. The weak pricing environment is expected to continue over the near term. Lower pricing is likely to continue weighing on the company&#39;s sales and margins.
<h3>Stocks to Consider</h3>
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crs#NYSE">CRS</a>), Axalta Coating Systems Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axta#NYSE">AXTA</a>) and Cabot Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cbt#NYSE">CBT</a>).
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company&#39;s shares have soared roughly 90% in the past year.
Axalta Coating Systems, carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA&#39;s current-year earnings has been revised upward by 5.9%. The company&#39;s shares have gained roughly 3% in the past year.
Cabot currently carries a Zacks Rank #2. CBT has a projected earnings growth rate of 29% for the current fiscal year. The company&#39;s shares have rallied around 33% in the past year.
<a href="https://www.zacks.com/stock/news/2299045/here-s-why-you-should-hold-onto-cf-industries-cf-stock-for-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2299045">To read this article on Zacks.com click here.</a>

Here's Why You Should Hold Onto CF Industries Stock for Now

UBS analyst Joshua Spector maintains Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>) with a Neutral and lowers the price target from $39 to $38.

UBS Maintains Neutral on Axalta Coating Sys, Lowers Price Target to $38

Celanese Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ce#NYSE">CE</a>) is expected to benefit from its investments in high-return organic projects, cost and productivity actions and synergies of acquisitions. However, it faces headwinds from weak demand in certain end markets and pricing pressures.
The company&#39;s shares have gained 14.6% in a year against a 13.3% decline of its industry.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/18/70695.jpg?v=594454220" />
Image Source: Zacks Investment Research
Let&#39;s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
<h3>Acquisitions &amp; Productivity Aid Celanese</h3>
Celanese&#39;s strategic acquisitions have provided it with opportunities for additional growth, investment and synergies. The acquisition of the majority of DuPont&#39;s Mobility &amp; Materials (&quot;M&amp;M&quot;) business has allowed Celanese to enhance its growth in high-value applications. Celanese expects incremental M&amp;M synergies of at least $150 million during 2024.
The acquisitions of SO.F.TER., Nilit and Omni Plastics are also expected to contribute to earnings expansion in the company&#39;s Engineered Materials segment. The Elotex acquisition also strengthened the company&#39;s position in the vinyl acetate ethylene emulsions space. Moreover, the purchase of Exxon Mobil&#39;s Santoprene business broadened the company&#39;s portfolio of engineered solutions and enabled it to offer a wider range of functionalized solutions to targeted growth areas, including future mobility, medical and sustainability.
Celanese also remains focused on executing its productivity programs including the implementation of several cost-reduction capital projects. Productivity actions are expected to support its margins in 2024.
The company is proactively implementing strategic initiatives recognizing the volatility and unpredictability of the current market landscape and competitive environment. These actions involve strengthening its commercial teams, aligning production and inventory levels with prevailing demand, implementing cost-saving measures and optimizing cash flow. These endeavors are expected to result in strong cash generation and a continuation of earnings growth.
Celanese has also completed the startup of a new 1.3-million-ton Clear Lake acetic acid expansion unit and a new vinyl acetate ethylene unit in Nanjing. It expects the Clear Lake expansion to contribute to higher earnings performance in the second quarter and into the second half of 2024.
Moreover, Celanese continues to generate strong cash flows and is focused on boosting shareholders&#39; value and deleveraging its balance sheet. It generated a record operating cash flow of $1.9 billion and a free cash flow of $1.3 billion in 2023. CE returned $305 million to shareholders through dividend payouts during 2023. Moreover, the company reduced its net debt by $1.3 billion in 2023. It expects to continue reducing its net debt in 2024. The company, in its first-quarter call, said that it expects to repay over $2 billion in total debt maturities over the next four quarters.
<h3>Soft Demand &amp; Pricing a Concern</h3>
CE is exposed to headwinds from demand softness in some of its end markets. It witnessed weak demand in several end markets and destocking in 2023. Soft demand led to inventory reduction and deferral of orders by the company&#39;s customers. Demand remains sluggish in industrial and consumer goods end markets. The company continues to see subdued demand in Europe. Demand conditions are yet to return to normal levels. Weaker demand recovery globally is likely to weigh on the company&#39;s volumes in the near term.
Celanese is also being challenged by significant competition. Competitive pressure is hurting its prices. CE saw lower pricing on a year-over-year basis across its segments in the first quarter. The company expects the pricing pressure to continue due to the challenging competitive dynamics in the second quarter of 2024.
<h3>Stocks to Consider</h3>
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crs#NYSE">CRS</a>), Axalta Coating Systems Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axta#NYSE">AXTA</a>) and Cabot Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cbt#NYSE">CBT</a>).
CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company&#39;s shares have soared roughly 93% in the past year. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy).
Axalta Coating Systems, carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA&#39;s current-year earnings has been revised upward by 5.9%. The company&#39;s shares have gained roughly 6% in the past year.
Cabot currently carries a Zacks Rank #2. CBT has a projected earnings growth rate of 26% for the current fiscal year. The company&#39;s shares have rallied around 33% in the past year.
<a href="https://www.zacks.com/stock/news/2298431/here-s-why-you-should-hold-onto-celanese-ce-stock-for-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2298431">To read this article on Zacks.com click here.</a>

Here's Why You Should Hold Onto Celanese Stock for Now

The Mosaic Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mos#NYSE">MOS</a>) is gaining from healthy demand for phosphate and potash and actions to improve its cost structure amid headwinds from weaker fertilizer prices. 
The company&#39;s shares are down 15.5% over a year compared with a 17.4% decline recorded by its industry.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/47/69563.jpg?v=916853024" /> 
Image Source: Zacks Investment Research
Mosaic, a Zacks Rank #3 (Hold) stock, is well-positioned to gain from the strong demand for phosphate and potash, aided by favorable agricultural conditions. Attractive farm economics and improved affordability are driving demand for fertilizers globally. Farmer economics remains attractive in most global growing regions on strong crop demand and affordable inputs. 
Demand for grains and oilseeds remains high along with strong farm economics. Improved farmer affordability due to a pullback in prices of nutrients is also likely to continue to drive demand for fertilizers. Strong demand is expected to support the company&#39;s sales volumes. 
MOS, on its first-quarter call, said that agricultural fundamentals are strong this year and farmers worldwide remain profitable notwithstanding the softening of corn and soybean prices. The expected transition from El Nino to La Nina could benefit regions like Southeast Asia, India and Brazil. Many growers in certain parts of the world, after years of reduced fertilizer use, are aiming to restore soil nutrients. 
Moreover, the company is taking actions to reduce costs amid a still-challenging operating environment. Its actions to improve its operating cost structure through transformation plans are expected to boost profitability. Mosaic remains on track with its cost-reduction plan announced last year, which is expected to drive $150 million in run-rate cost reductions by the end of 2025. 
Mosaic also remains committed to carrying out investments with high returns with moderate capital expenditures. It has completed the 800,000-ton MicroEssentials capacity conversions. The Esterhazy Hydrofloat project, which will add 400,000 tons in milling capacity, is expected to be completed by the middle of next year. The construction of a new blending and distribution center in Palmeirante, Brazil is also expected to be completed in 2025. 
However, weaker fertilizer prices may weigh on the company&#39;s margins. Prices of phosphate and potash have retreated since the back half of 2022 from their peak levels attained in the first half riding on the impacts of the Russia-Ukraine war and disruptions due to the sanctions in Belarus. Lower selling prices hurt sales and margins across the company&#39;s Phosphate and Potash segments in the first quarter of 2024. Despite some recovery of late, weaker year-over-year fertilizer prices are expected to continue to weigh on the company&#39;s profitability in the second quarter.
<div class="chart_embed">
<h3>The Mosaic Company Price and Consensus</h3>
<img alt="The Mosaic Company Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/1b/1719396838.png" style="height:265px; width:583px" title="" />
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
</div>
<h3>Stocks to Consider</h3>
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crs#NYSE">CRS</a>), Axalta Coating Systems Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axta#NYSE">AXTA</a>) and ATI Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ati#NYSE">ATI</a>). 
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company&#39;s shares have soared roughly 94% in the past year. 
Axalta Coating Systems, carrying a Zacks Rank #1, has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA&#39;s current-year earnings has been revised upward by 5.9%. The company&#39;s shares have gained roughly 6% in the past year. 
ATI currently carries a Zacks Rank #1. ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company&#39;s shares have rallied around 35% in the past year.
<a href="https://www.zacks.com/stock/news/2293443/mosaic-mos-gains-on-strong-demand-amid-soft-fertilizer-pricing?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2293443">To read this article on Zacks.com click here.</a>

Mosaic Gains on Strong Demand Amid Soft Fertilizer Pricing

The chemical industry is poised to benefit from an uptick in demand in certain key markets, including consumer durables and building &amp; construction, as the unprecedented customer inventory de-stocking that started in late 2022 and plagued the industry through the first quarter of 2024 is largely complete. 
In addition to the expected demand rebound, strategic measures, including operating cost reduction and price hike actions along with declining raw material costs, bode well for the industry. Stocks like DuPont de Nemours, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dd#NYSE">DD</a>), Axalta Coating Systems Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axta#NYSE">AXTA</a>), Cabot Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cbt#NYSE">CBT</a>) and Kronos Worldwide, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kro#NYSE">KRO</a>) are good choices for investment as they are expected to benefit from the demand upturn. 
The chemical space bore the brunt of the demand slowdown in certain major markets in 2023, which continued through first-quarter 2024. The downturn in the building &amp; construction market and the de-stocking in consumer electronics played spoilsport, leading to demand destruction in these key markets. In North America, uncertainties surrounding the U.S. housing market weighed on building &amp; construction. Notably, the housing market bore the brunt of interest rate hikes last year. The demand slowdown in industrial and consumer durables hurt the volumes of chemical companies. 
Lower consumer spending due to inflationary pressures in Europe and a slow recovery in China also impacted demand. Moreover, a slower recovery in economic activities in China following the lifting of the restrictions related to the resurgence in COVID-19 infections hurt chemical demand in that country. The slowdown in Europe, resulting from the war in Ukraine and weaker consumer spending due to high levels of inflation, led to softer demand in that region. The energy and feedstock inflation resulted in reduced industrial production and consumer spending in Europe. 
Nevertheless, customer inventory de-stocking has largely ended, leading to low inventory levels. This should result in an uptick in chemical demand and volumes, with a meaningful improvement expected in the second half of 2024. The de-stocking was primarily driven by high inflation and the lingering impacts of the pandemic that affected customer spending. 
Demand for chemicals in the automotive market has picked up, aided by an uptick in automotive production on an improved supply of semiconductors. The resolution to the six-week United Auto Workers strike also led to a rebound in chemical demand in automotive. Moreover, chemical companies are seeing a recovery in demand across the construction and electronics markets. Demand in healthcare and packaging markets also remains steady. 
Moderating raw material and energy costs driven by the easing of supply-chain disruptions is also expected to act as a tailwind. Meanwhile, industrial production is picking up pace in China on a recovery in external demand, underscoring improving conditions in the world&#39;s second-largest economy. However, the recovery in domestic demand in China remains slow due to the protracted crisis in real estate. Easing inflation on a decline in energy prices is also likely to support demand recovery in Europe.&nbsp;
<h3>4 Chemical Stocks Worth a Bet</h3>
A rebound in end-market demand, moderating raw material and energy costs, and the absence of customer inventory destocking augur well for the chemical industry. 
We highlight the following four stocks with a solid Zacks Rank that are good options for investment right now. Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer good investment opportunities. 
DuPont: Delaware-based DuPont is benefiting from innovation-driven investment focused on several high-growth areas. It remains focused on driving growth through innovation and new product development. The acquisition of Spectrum Plastics Group has also strengthened DuPont&#39;s position in stable and fast-growing healthcare end markets. DuPont is also benefiting from cost synergy savings and productivity improvement actions. Its planned separation into three independent, publicly traded companies is also expected to drive significant growth opportunities. 
DuPont, sporting a Zacks Rank #1, has expected earnings growth of 4.3% for 2024. The Zacks Consensus Estimate for DD&#39;s earnings for 2024 has been revised upward by 4.3% over the last 60 days. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of roughly 9%. 
Axalta Coating Systems: Pennsylvania-based Axalta is benefiting from the strength in refinish and light vehicle businesses, which is offsetting the weakness in industrial markets. The acquisition of CoverFlexx Group will enhance Axalta&#39;s refinish business by incorporating CoverFlexx&#39;s extensive range of automotive refinish and aftermarket coatings, including primers, basecoats, clearcoats and various detailing products. Axalta has also strategically expanded its portfolio by acquiring Andre Koch AG, a well-established Refinish distribution partner headquartered in Switzerland. Moreover, AXTA has raised its full-year 2024 earnings and free cash flow outlook based on strong first-quarter results and strategic actions to drive earnings. 
Axalta, carrying a Zacks Rank #1, has expected earnings growth of 26.8% for 2024. The Zacks Consensus Estimate for AXTA&#39;s 2024 earnings has been revised upward by 5.9% over the last 60 days. 
Cabot: Massachusetts-based Cabot is seeing strong results in its Reinforcement Materials segment driven by higher volumes in Asia and Europe, pricing and mix improvements, and the strength in the replacement tire market. Demand in the Performance Chemicals unit has also improved as de-stocking has ended. CBT&#39;s strong cash generation also facilitates a balanced capital allocation approach that emphasizes strategic investments, long-term earnings growth and shareholder returns while preserving a solid investment-grade balance sheet. 
Cabot, a Zacks Rank #2 stock, has expected earnings growth of 26% for fiscal 2024. The Zacks Consensus Estimate for CBT&#39;s earnings for fiscal 2024 has been revised upward by 3% over the last 60 days. 
Kronos Worldwide: Texas-based Kronos is expected to gain from higher demand for titanium dioxide (TiO2). Stronger demand for TiO2 in primary markets of Europe and North America is likely to drive its sales volumes. KRO is also expected to benefit from easing pricing pressure. Reduced energy costs, along with cost-reduction initiatives are expected to support margins. 
Kronos Worldwide, carrying a Zacks Rank #2, has expected earnings growth of 297.7% for 2024. The Zacks Consensus Estimate for KRO&#39;s earnings for 2024 has been revised upward by 157.6% over the last 60 days.
<a href="https://www.zacks.com/stock/news/2288317/4-top-chemical-stocks-to-buy-as-destocking-has-run-its-course?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2288317">To read this article on Zacks.com click here.</a>

Small Cap

4 Top Chemical Stocks to Buy As Destocking Has Run Its Course

Eastman Chemical Company&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/emn#NYSE">EMN</a>) shares have shot up 18% over the past six months. The company has also outperformed its industry&#39;s rise of 9.7% over the same time frame. Moreover, it has topped the S&amp;P 500&#39;s around 15% rise over the same period. 
Let&#39;s take a look into the factors behind this Zacks Rank #3 (Hold) stock&#39;s price appreciation.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/f9/68080.jpg?v=1380915685" /> 
Image Source: Zacks Investment Research
<h3>What&#39;s Working in EMN&#39;s Favor?</h3>
Strong first-quarter 2024 results and upbeat prospects have contributed to the run-up in the company&#39;s shares. EMN&#39;s adjusted earnings of $1.61 per share trounced the Zacks Consensus Estimate of $1.41. Revenues of $2,310 million for the quarter also beat the Zacks Consensus Estimate of $2,259.2 million. The company benefited from a return to primary demand for many of its specialty products in the Advanced Materials and Additives &amp; Functional Products segments. 
Eastman is benefiting from its innovation-driven growth model and actions to manage costs. It is expected to benefit from lower operating costs from its operational transformation program. 
EMN is taking actions to keep its manufacturing and administrative costs in control. It achieved cost savings of around $200 million in 2023, net of inflation.&nbsp;Pricing initiatives and lower raw material and energy costs are also expected to support the company&#39;s bottom line. The company plans to maintain pricing discipline and improve asset utilization throughout the year. 
Moreover, Eastman&#39;s goal is to increase new business revenues by utilizing its innovation-driven growth strategy. Its sales volumes are expected to be supported by the innovation and market development initiatives. 
The company is also expected to gain from the revenues and earnings generated by its Kingsport methanolysis facility in 2024, mostly in the second half of the year. The facility is expected to deliver roughly $75 million of incremental EBITDA growth in 2024. 
Eastman Chemical also remains focused on maintaining a disciplined approach to capital allocation with an emphasis on debt reduction. It returned $526 million to shareholders in 2023 through dividends and share repurchases. It also raised its dividend for the 14th consecutive year. Eastman expects to generate cash flow from operating activities of roughly $1.4 billion for 2024. It expects to repurchase shares worth $200-$300 million in 2024.
<div class="chart_embed">
<h3>Eastman Chemical Company Price and Consensus</h3>
<a href="https://www.zacks.com/stock/chart/EMN/price-consensus-chart?icid=chart-EMN-price-consensus-chart"><img alt="Eastman Chemical Company Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/a0/1717491844.png" style="height:265px; width:583px" title="" /> </a>
Eastman Chemical Company price-consensus-chart | Eastman Chemical Company Quote
</div>
<h3>Stocks to Consider</h3>
Better-ranked stocks in the basic materials space include Axalta Coating Systems Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axta#NYSE">AXTA</a>), Carpenter Technology Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crs#NYSE">CRS</a>) and ATI Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ati#NYSE">ATI</a>). 
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company&#39;s shares have soared roughly 127% in the past year. 
Axalta Coating Systems, carrying a Zacks Rank #1, has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA&#39;s current-year earnings has been revised upward by 5.9%. The company&#39;s shares have gained roughly 15% in the past year. 
ATI currently carries a Zacks Rank #2 (Buy). ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company&#39;s shares have rallied around 62% in the past year.
<a href="https://www.zacks.com/stock/news/2283190/eastman-chemical-emn-shares-rally-18-in-6-months-here-s-why?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2283190">To read this article on Zacks.com click here.</a>

Eastman Chemical Shares Rally 18% in 6 Months: Here's Why

During the last three months, 9 analysts shared their evaluations of Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>), revealing diverse outlooks from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Axalta Coating Sys, presenting an average target of $40.67, a high estimate of $45.00, and a low estimate of $38.00. This upward trend is apparent, with the current average reflecting a 5.8% increase from the previous average price target of $38.44.
<img src="https://www.benzinga.com/files/images/story/2024/1716296421_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The perception of Axalta Coating Sys by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>John Roberts</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$41.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Arun Viswanathan</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$42.00</td>
<td>$39.00</td>
</tr>
<tr>
<td>Aleksey Yefremov</td>
<td>Keybanc</td>
<td>Raises</td>
<td>Overweight</td>
<td>$40.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Jeffrey Zekauskas</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$40.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Michael Leithead</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$40.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>John McNulty</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$45.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>John Roberts</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Buy</td>
<td>$38.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Ghansham Panjabi</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$40.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Patrick Cunningham</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$40.00</td>
<td>$38.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Axalta Coating Sys. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Axalta Coating Sys compared to the broader market.</li>
<li>Price Targets: Gaining insights, analysts provide estimates for the future value of Axalta Coating Sys's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
To gain a panoramic view of Axalta Coating Sys's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/AXTA/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Axalta Coating Sys analyst ratings.</a>
<h2>Get to Know Axalta Coating Sys Better</h2>
Axalta Coating Systems Ltd is a manufacturer, marketer and distributor of high-performance coatings systems. It operates in two segments, The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial. The Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The company operates in the geographic areas of North America, EMEA countries, Asia-Pacific and Latin America.
<h3>Financial Insights: Axalta Coating Sys</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Axalta Coating Sys's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 0.78%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.
Net Margin: Axalta Coating Sys's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.17% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Axalta Coating Sys's ROE excels beyond industry benchmarks, reaching 2.37%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Axalta Coating Sys's ROA excels beyond industry benchmarks, reaching 0.57%. This signifies efficient management of assets and strong financial health.
Debt Management: With a high debt-to-equity ratio of 1.98, Axalta Coating Sys faces challenges in effectively managing its debt levels, indicating potential financial strain.
<h2>The Basics of Analyst Ratings</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

9 Analysts Have This To Say About Axalta Coating Sys

Mizuho analyst John Roberts maintains Axalta Coating Sys (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>) with a Buy and raises the price target from $38 to $41.

Mizuho Maintains Buy on Axalta Coating Sys, Raises Price Target to $41

Solera and Axalta partner together to accurately calculate CO2 emissions per vehicle repair.
Solera, the global leader in vehicle lifecycle management, today announced a strategic partnership with Axalta (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>), a leading global supplier of liquid and powder coatings. Through this strategic partnership, Axalta's conventional and Fast Cure Low Energy (FCLE) refinish paint systems will be integrated into Solera's Sustainable Estimatics platform, enabling Axalta Customers to analyze their CO2 emissions per repair, considering repair methods (repair versus replace), paint application process, and drying conditions.

Solera, Axalta Partner Together To Accurately Calculate CO2 Emissions Per Vehicle Repair.

Analysts have been eager to weigh in on the Materials sector with new ratings on Air Products and Chemicals (APD – Research Report), IGO (IPGDF – R...

Analysts Offer Insights on Materials Companies: Air Products and Chemicals (APD), IGO (OtherIPGDF) and Axalta Coating Systems (AXTA)

In a report released today, Michael Harrison CFA from Seaport Global maintained a Buy rating on Axalta Coating Systems (AXTA – Research Report), wi...

Seaport Global Remains a Buy on Axalta Coating Systems (AXTA)

Bank of America Securities analyst Steve Byrne maintained a Buy rating on Axalta Coating Systems (AXTA – Research Report) today and set a price tar...

Bank of America Securities Sticks to Its Buy Rating for Axalta Coating Systems (AXTA)

In a report released on August 2, Arun Viswanathan from RBC Capital maintained a Buy rating on Axalta Coating Systems (AXTA – Research Report), wit...

RBC Capital Remains a Buy on Axalta Coating Systems (AXTA)

In a report released today, Vincent Andrews from Morgan Stanley maintained a Hold rating on Axalta Coating Systems (AXTA – Research Report), with a...

Morgan Stanley Sticks to Their Hold Rating for Axalta Coating Systems (AXTA)

Deutsche Bank analyst David Begleiter reiterated a Buy rating on Axalta Coating Systems (AXTA – Research Report) on August 11 and set a price targe...

Buy Rating Reaffirmed for Axalta Coating Systems Amid Strong Performance and Positive Outlook

Bullish stocks within industrials after reaching new highs

Axalta's Self-Improvement Not Yet Fully Rewarded

With the ongoing energy transition, the demand for specialty chemicals is increasing due to government initiatives, technological advancements, and rebounds in key industries. Therefore, growth investors could consider investing in specialty chemicals stocks such as Element Solutions (ESI), Avient (AVNT), and Axalta Coating Systems (AXTA), for solid gains this year. Read more... The specialty chemicals market is poised for strong growth as demand rebounds in key industries like automotive, aerospace, and electronics. Against this promising backdrop, investing in high-growth specialty chemicals stocks like Element Solutions Inc (<a href="https://stocknews.com/stock/ESI/">ESI</a>), Avient Corporation (<a href="https://stocknews.com/stock/AVNT/">AVNT</a>), and Axalta Coating Systems Ltd. (<a href="https://stocknews.com/stock/AXTA/">AXTA</a>) could yield substantial gains.
The long-term outlook for specialty chemicals is positive, driven by a resurgence in U.S. manufacturing and favorable energy conditions. With rising demand for agro and construction chemicals, the specialty chemicals market is expected to grow at a 6.8% CAGR until 2028, reaching <a href="https://www.technavio.com/report/specialty-chemicals-market-industry-analysis">$368.20 billion</a>. This growth highlights the vital role of specialty chemicals, making them a promising investment opportunity.
Meanwhile, technological innovations are transforming specialty chemical manufacturing, leading to advanced materials and cost-effective formulations. Also, government initiatives and a shift toward sustainability are driving growth in chemicals that support the energy transition. Hence, the global chemical market is projected to reach $5.57 trillion this year, growing at a <a href="https://www.researchandmarkets.com/reports/5781388/chemicals-global-market-report?srsltid=AfmBOoqqsoeN-j06Ol_4FLsjB6ot8GDxml6uthsxjX1f4Parc6LM8FJD">9% CAGR</a>.
Considering these conducive trends, let's analyze the fundamental aspects of the three <a href="https://stocknews.com/category/chemicals/">Chemicals</a> picks, beginning with the third choice.
Stock #3: Element Solutions Inc (<a href="https://stocknews.com/stock/ESI/">ESI</a>)
ESI operates as a specialty chemicals company in the United States, China, and internationally. The company functions in two segments: Electronics, and Industrial &amp; Specialty.
In terms of the trailing-12-month <a href="https://www.investopedia.com/terms/g/gross_profit_margin.asp">gross profit margin</a>, ESI's 41.28% is 44.1% higher than the 28.64% industry average. Likewise, its 10.29% trailing-12-month levered FCF margin is 96.5% higher than the 5.23% industry average. Also, its 3.90% trailing-12-month Return on Total Assets is 73.7% higher than the 2.25% industry average.
ESI's total assets grew at a CAGR of 2.4% over the past three years. Its revenue grew at a CAGR of 4.6% over the past five years. Moreover, its levered FCF grew at a CAGR of 6.3% over the past three years.
ESI's net sales for the second quarter ended June 30, 2024, were $612.70 million, indicating a 4.5% year-over-year increase. Likewise, its adjusted EBITDA increased 16.4% year-over-year to $135.10 million. The company's adjusted net income and adjusted EPS rose 17.2% and 16.1% over the prior-year quarter to $88.70 million and $0.36, respectively.
Analysts expect ESI's revenue for the quarter ending September 30, 2024, to increase 5% year-over-year to $629.07 million. Its EPS for the same quarter is expected to grow 7.6% year-over-year to $0.39. It surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past year, ESI's stock has gained 23% to close the last trading session at $25.68.
ESI's promising outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Growth and Sentiment. Within the B-rated <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, it is ranked #31 out of 81 stocks. To see ESI's ratings for Value, Momentum, Stability, and Quality, <a href="https://stocknews.com/stock/ESI/">click here</a>.
Stock #2: Avient Corporation (<a href="https://stocknews.com/stock/AVNT/">AVNT</a>)
AVNT operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It functions in two segments: Color, Additives and Inks, and Specialty Engineered Materials.
In terms of the trailing-12-month levered FCF margin, AVNT's 9.77% is 86.6% higher than the 5.23% industry average. Similarly, its 17.28% trailing-12-month EBITDA margin is 4% higher than the industry average of 16.62%. Its 11.59% trailing-12-month EBIT margin is 7% higher than the industry average of 10.83%.
AVNT's EBITDA grew at a CAGR of 3.4% over the past three years. Similarly, its total assets grew at a CAGR of 5.4% during the same period. Also, its EBIT grew at a CAGR of 1.2% over the past three years.
During the second quarter, which ended on June 30, 2024, AVNT's sales grew 3.1% from the year-ago value to $849.70 million. The company's operating income rose 18.5% year-over-year to $99.70 million. Moreover, its adjusted net income and adjusted EPS were $70.20 million and $0.76, respectively, up 21.2% and 20.6% from the year-ago value.
Street expects AVNT's EPS and revenue for the quarter ending September 30, 2024, to increase 9.5% and 5.2% year-over-year to $0.62 and $793.15 million. It surpassed the Street EPS estimates in each of the trailing four quarters. Over the past nine months, AVNT's stock has gained 33.3% to close the last trading session at $47.32.
AVNT's POWR Ratings reflect its bright outlook. It has an overall rating of B, translating to a Buy in our proprietary rating system.
It has a B grade for Growth and Sentiment. It is ranked #15 in the same industry. To see AVNT's Value, Momentum, Stability, and Quality ratings, <a href="https://stocknews.com/stock/AVNT/">click here</a>.
Stock #1: Axalta Coating Systems Ltd. (<a href="https://stocknews.com/stock/AXTA/">AXTA</a>)
AXTA and its subsidiaries manufacture, market, and distribute high-performance coating systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments: Performance Coatings and Mobility Coatings.
On September 3, 2024, AXTA introduced the Axalta Irus Scan, a next-generation spectrophotometer designed to enhance color-matching accuracy and efficiency for refinish customers. The device features advanced color measurement and gloss capabilities, improving productivity, reducing waste, and optimizing labor in automotive refinishing.
On July 2, 2024, AXTA Coating Systems completed the acquisition of The CoverFlexx Group from Transtar Holding Company. This acquisition enhances AXTA's offerings in automotive refinish coatings and supports its growth strategy in the Refinish business.
In terms of the trailing-12-month Return on Common Equity, AXTA's 17.46% is 208.6% higher than the 5.66% industry average. Its 10.22% trailing-12-month levered FCF margin is 95.3% higher than the 5.23% industry average. In addition, its 8.50% trailing-12-month Return on Total Capital is 72% higher than the 4.94% industry average.
AXTA's revenue grew at a CAGR of 7% over the past three years. Its EPS grew at a CAGR of 2.7% over the past three years. Moreover, its EBIT grew at a CAGR of 3.6% over the past three years.
In the fiscal second quarter ended June 30, 2024, AXTA reported net sales of $1.25 billion, up 4.4% year-over-year. The company's adjusted net income stood at $127 million, or $0.57 per share, indicating increases of 64.9% and 62.9% from the year-ago values. Furthermore, its adjusted EBIT rose 43.9% year-over-year to $223 million.
For the quarter ending September 30, 2024, its EPS and revenue are expected to increase 14.4% and 2.1% year-over-year to $0.51 and $1.34 billion, respectively. It surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 26.3% to close the last trading session at $35.74.
AXTA's POWR Ratings reflect solid fundamentals. It has an overall rating of B, which translates to a Buy in our proprietary rating system.
It is ranked #11 in the Chemicals industry. It has a B grade for Growth and Quality. <a href="https://stocknews.com/stock/AXTA/">Click here</a> to access additional ratings for AXTA's Value, Momentum, Stability, and Sentiment ratings.
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AXTA shares were trading at $35.21 per share on Wednesday afternoon, down $0.53 (-1.48%). Year-to-date, AXTA has gained 3.65%, versus a 16.52% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/axta-esi-avnt-3-specialty-chemicals-stocks-with-high-growth-potential/>3 Specialty Chemicals Stocks With High Growth Potential</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Specialty Chemicals Stocks With High Growth Potential

Wells Fargo analyst Michael Sison has maintained their bullish stance on AXTA stock, giving a Buy rating on September 30. I'm sorry, but I cannot f...

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