Zacks Investment Research upgraded
Minerals Technologies Inc.
) to a Zacks Rank #1 (Strong Buy) on Jun 12, 2014. Going by the
Zacks model, companies holding a Zacks Rank #1 have strong chances
of performing better than the broader market.
Why the Upgrade?
A series of events in the past few months lifted sentiments for
Minerals Technologies, with its share price rising roughly 5.6%
year-to-date. Recently, the company signed an agreement to build a
satellite, precipitated calcium carbonate plant for coated
packaging paper in China. The company expects this transaction to
help it expand its operations in China.
Also, in May 2014, Minerals Technologies acquired AMCOL
International Corporation for $45.75 per share in cash. The
combined entity is anticipated to emerge as a strong player in the
bentonite and precipitated calcium carbonate market.
Further, the company reported impressive results for first-quarter
2014 on Apr 24. Earnings came in at 58 cents per share, reflecting
an increase of 5% year over year and above the Zacks Consensus
Estimate of 57 cents. Revenues decreased 2% year over year, while
cost of sales was down 3%.
Over the past 60 days, the Zacks Consensus Estimate for Minerals
Technologies has gone up by 8.0% to $2.85 for 2014 and 11.0% to
$3.34 for 2015. These consensus estimates represent year-over-year
growth rates of 17.8% for 2014 and 17.1% for 2015.
Increased earnings estimates as well as a positive average earnings
surprise of 4.3%, have made investors hopeful of another quarter of
upbeat result from Minerals Technologies. Currently, the company
of +10.5% for second-quarter 2014, +21.1% for 2014 and +28.7% for
Other Stocks to Consider
Minerals Technologies has a $2.1 billion market capitalization.
Other companies worth considering in the industry include
International Flavors & Fragrances Inc.
KMG Chemicals Inc.
NL Industries Inc.
). All these stocks hold a Zacks Rank #2 (Buy).
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