5 Chemical Stocks Worth A Bet Before Their Q4 Earnings
Zacks Investment Research | Jan 16, 2018 09:12PM ET
The chemical industry is riding high on an upswing in the global economy and continued strength across major end-use markets such as construction, automotive and electronics. Another positive for the industry is a recovery in demand in the energy space – a key chemical end-market that had been out of favor for a spell. The recovery has been driven by the rebound in crude oil prices from their historic lows.
Notwithstanding a few headwinds including some lingering impacts of devastating hurricanes, chemical companies are expected to continue the earnings momentum witnessed in the third quarter into the December quarter as the fundamental driving factors remain firmly in place.
Strategic measures including productivity improvement, pricing actions, portfolio restructuring and earnings-accretive acquisitions are expected to continue to drive the performance of chemical makers in the fourth quarter.
Per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. The Basic Materials sector is among the Zacks sectors that are expected to rack up the strongest gains in the fourth quarter. Overall fourth-quarter earnings for the sector are projected to climb 26.9% while revenues are expected to spike 17.7%, per the latest Zacks Investment Research
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