Chart Industries (GTLS) Buys Stake in Transform Materials
Chart Industries, Inc. GTLS recently announced that it has acquired a 5% stake in Transform Materials, a chemical technology company. The transaction has been valued at $25 million.
The company’s shares moved up 3.1% to eventually close the trading session at $142.35, yesterday.
Inside the Headlines
Founded in 2014, Transform Materials is engaged in converting natural gas into acetylene and hydrogen with the help of microwave-generated plasma. Notably, the company’s patented technology platform facilitates in transforming methane into acetylene and hydrogen in an environment friendly manner.
The investment in Transform Materials will enable Chart Industries to expand its presence and growth prospects in the clean-energy markets, particularly hydrogen. With this investment, Chart Industries will gain access to customers and commercial projects in new regions.
In addition to the aforementioned investment, Chart Industries entered into a commercial Memorandum of Understanding (MOU) with Transform Materials, whereby Chart Industries will supply equipment to Transform Materials’ projects.
Other Growth Enhancing Actions
The transaction is in sync with Chart Industries’ policy of investing in businesses to gain access to new customers, regions and product lines.
In December 2020, it completed the acquisition of Sustainable Energy Solutions, Inc. Also, the company acquired Worthington Industries, Inc.’s WOR cryogenic trailer and hydrogen trailer business in Theodore, AL. In addition, it purchased Microbulk cryogenic tank business from IC Biomedical for an undisclosed amount.
Zacks Rank, Price Performance and Earnings Trend
Chart Industries currently has a market capitalization of $5.2 billion and sports a Zacks Rank #1 (Strong Buy). The company is likely to benefit from solid product offerings and orders, cost-saving actions, and planned investments.
In the past three months, its shares have gained 20.8% compared with the industry’s growth of 85.7%.
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The Zacks Consensus Estimate for its 2021 earnings has improved 8.9% to $3.67 in the past 60 days on the back of seven upward revisions. Also, estimates for 2022 increased 15.9% to $5.09 on five upward revisions during the same period.
Other Stocks to Consider
A couple of other top-ranked stocks from the same space are Applied Industrial Technologies, Inc. AIT and Kadant Inc KAI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial delivered a positive earnings surprise of 21.92%, on average, in the trailing four quarters.
Kadant delivered a positive earnings surprise of 30.95%, on average, in the trailing four quarters.
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