KMG Chemicals Hits 52-Week High on Solid Q1, Bright Future

Evaluating market performance charts

Shares of KMG Chemicals, Inc.KMG reached a 52-week high of $40.07 during its trading session on Dec 27. This apex improved upon the last 52-week high of $39.25 on Dec 23.

After the release of first-quarter fiscal 2017 (ended Oct 31, 2016) results on Dec 13, shares of KMG Chemicals, Inc. yielded a positive return of 7.9%, outperforming the negative return of 1.5% by the Zacks categorized Chemical Specialty industry.

Also, KMG Chemicals closed its trading session on Dec 27 at $39.38, yielding a solid calendar year-to-date return of roughly 72.1%. The trading volume for the session was 0.06 million shares. Positive earnings estimate revisions for fiscal 2017 and fiscal 2018 indicate the stock's potential for further price appreciation.

Growth Drivers

KMG Chemicals, Inc. reported better-than-expected results in three out of four trailing quarters, with an average positive earnings surprise of 5.27%. In the first-quarter fiscal 2017, the company's earnings of 48 cents per share surpassed the Zacks Consensus Estimate of 45 cents by 6.67%.

In the quarter, KMG Chemicals benefited from the healthy growth in electronic chemicals business, acquisitions, improved pricing and product mix. Also, the balance sheet was strong enough to support debt reduction initiatives.

In the quarters ahead, KMG Chemicals aims to reap benefits from its operational excellence, commercial excellence and strategic growth policies. Also, the company believes in making meaningful acquisitions for its geographical expansion and exploring new markets like industrial lubricants.

Currently, the company has an Earnings ESP of +0.55% for fiscal 2017 and +1.52% for fiscal 2018, clearly positing toward a positive sentiment for the stock. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for KMG Chemicals, Inc. increased 2.8% to $1.82 for fiscal 2017 and 0.5% to $1.98 for fiscal 2018. These estimates represent year-over-year growth of 12.7% for fiscal 2017 and 9.1% for fiscal 2018.

KMG CHEMICALS Price and Consensus

KMG CHEMICALS Price and Consensus | KMG CHEMICALS Quote

With a market capitalization of approximately $466.9 million, KMG Chemicals, Inc. currently carries a Zacks Rank #2 (Buy). Other favorably placed chemical stocks include Versum Materials, Inc. VSM , BioAmber Inc. BIOA and Israel Chemicals Ltd. ICL . While Versum Materials sports a Zacks Rank #1 (Strong Buy), both BioAmber and Israel Chemicals carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Versum Materials, Inc.'s earnings estimates for fiscal 2017 increased over the last 60 days, representing year-over-year growth of 11.07%.

BioAmber Inc's bottom-line expectations have improved for 2016. The estimates for 2016 and 2017 represent year-over-year growth of 59.35% and 30.16%, respectively.

Israel Chemicals Ltd. has an average positive earnings surprise of 15.28% for the last four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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