Markets
HUN

Methanex (MEOH) Hits New 52-Week High: What's Driving It?

An image of a pencil and a calculator
Credit: Shutterstock photo

Shares of Methanex CorporationMEOH scaled a fresh 52-week high of $63.10 on Jan 2, before eventually closing the day at $62.75.

The company has a market cap of roughly $5.3 billion. Average volume of shares traded in the last three months is around 607.7K. It has an expected long-term EPS growth of 15%.

Methanex's shares have gained 22.2% in the last three months, significantly outperforming the industry 's 3.9% growth.

Driving Factors

On third-quarter earnings call, Methanex issued a positive outlook for the fourth quarter. The company expects global m ethanol prices to improve in the fourth quarter supported by healthy demand. Methanex anticipates production, sales of produced products and EBITDA to be higher in the fourth quarter compared with the third.

Methanex is likely to gain from healthy demand fundamentals for methanol. Demand has been driven by both traditional derivatives and energy-related applications in Asia, particularly in China. Notably, the wide disparity between the price of crude oil and that of natural gas and coal has resulted in increased use of methanol in energy applications, which now accounts for roughly 40% of global methanol demand.

Methanex has completed the relocation of two Chilean plants to the U.S. Gulf Coast at a site in Geismar, LA. The project is expected to create significant value for shareholders and meaningfully contribute to cash generation.

Methanex also remains committed to boost shareholder returns leveraging its strong liquidity position. The company returned $109 million in cash to shareholders in the form of dividend in the third quarter.

Methanex Corporation Price and Consensus

Methanex Corporation Price and Consensus | Methanex Corporation Quote

Zacks Rank & Other Stocks to Consider

Methanex currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Huntsman Corporation HUN , Daqo New Energy Corp. DQ and Kronos Worldwide Inc. KRO , each flaunting a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Huntsman has an expected long-term earnings growth rate of 8%. Its shares have soared 73.6% in the last one year.

Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied a whopping 216.7% over a year.

Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have surged 104.5% in the last one year.

Investor Alert: Breakthroughs Pending

A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline. Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.

Click here to see them >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Methanex Corporation (MEOH): Free Stock Analysis Report

Kronos Worldwide Inc (KRO): Free Stock Analysis Report

Huntsman Corporation (HUN): Free Stock Analysis Report

DAQO New Energy Corp. (DQ): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

HUN MEOH KRO DQ

Other Topics

Stocks

Latest Markets Videos