Chemours (CC) shares soared 6.1% in the last trading session to close at $21.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.7% loss over the past four weeks.
Chemours' stock popped after it reached a comprehensive settlement with the U.S. EPA to resolve PFAS-related claims, reducing a significant regulatory overhang. Investors were also encouraged by the structured payment schedule, the resolution of additional litigation in West Virginia, and continued progress under the company's strategy to address legacy environmental liabilities while supporting long-term business stability.
This chemical company is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of -32.8%. Revenues are expected to be $1.65 billion, up 1.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Chemours, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Chemours is part of the Zacks Chemical - Diversified industry. Avient (AVNT), another stock in the same industry, closed the last trading session 2.9% higher at $36.82. AVNT has returned 1.4% in the past month.
For Avient, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.89. This represents a change of +11.3% from what the company reported a year ago. Avient currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
