Zacks Investment Research upgraded Taminco Corporation ( TAM ) to a Zacks Rank #1 (Strong Buy) on Nov 20, 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?
Taminco Corporation's third-quarter 2014 results were impressive. The announcement on Nov 6 was followed by positive market reactions. Since then, the company's share price gained 0.3% while its earnings estimates have been increased for 2014 and 2015. A brief discussion on the third-quarter results is provided below:
Earnings came in at 43 cents per share, increasing 72% from the Zacks Consensus estimate of 25 cents and way above the year-ago figure of 9 cents per share. Revenues rose 22% year over year on the back of solid demand in the Specialty Amines and Crop protection businesses. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) expanded 15% year over year, with a margin of 21%.
For 2014, Taminco Corporation maintained its EBITDA forecast in the range of $290−$295 million. The company is also in the process of merging with Eastman Chemical Company ( EMN ) for a cash consideration of $26.00 per share.
Over the last 30 days, the Zacks Consensus Estimate for Taminco Corporation has increased 4.8% to 87 cents per share and 0.9% to $1.07 for 2015. Also, the company has an Earnings ESP of +1.15% for 2014.
Other Stocks to Consider
Taminco Corporation currently has a $1.7 billion market capitalization. Other stocks worth considering in the chemical industry include Minerals Technologies Inc. ( MTX ) and NL Industries Inc. ( NL ), sporting the same rank as Taminco.