Zacks Investment Research upgraded
NL Industries Inc.
) to a Zacks Rank #1 (Strong Buy) on Jul 8, 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?
NL Industries' better-than-expected first-quarter 2014 results have
boosted investors' confidence. As a result, the company's share
price have risen 1.7% since May 8, 2014.
The company posted earnings of 8 cents per share, a remarkable
recovery from the loss of 4 cents per share incurred in the
prior-year quarter. Also, the bottom-line results surpassed the
Zacks Consensus Estimate of 2 cents of loss per share.
Revenues grew 20% to $25.8 million, driven by strong demand for
CompX's security products. However, revenue growth was partially
offset by increase in cost of sales. Gross profit increased 30%
year over year with gross margin up by 220 basis points.
Impressive results triggered upward revisions in earnings estimates
for NL Industries. Over the past 60 days, the Zacks Consensus
Estimate has gone up by 40.6% to 45 cents for 2014 and 11.1% to 50
cents for 2015. These consensus estimates represent year-over-year
growth of 139.5% for 2014 and 11.1% for 2015.
Other Stocks to Consider
NL Industries has a $473 million market capitalization. Other
companies worth considering in the industry include
KMG Chemicals Inc.
RTI International Metals, Inc.
Minerals Technologies Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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