In this article:
AdvanSix (ASIX) shares soared 9.4% in the last trading session to close at $28.98. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.4% loss over the past four weeks.
ASIX’s rally appears to reflect optimism about improved nylon demand conditions and the growth of its differentiated products. The company is benefiting from its differentiated product portfolio, exposure to diverse end markets and favorable demand and pricing. The favorable agricultural industry fundamentals also bode well for ammonium sulfate.
This polymer resins producer is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of -280%. Revenues are expected to be $374.15 million, down 2.1% 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 AdvanSix, the consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ASIX 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 >>>>
AdvanSix is part of the Zacks Chemical - Specialty industry. Arcadium (ALTM), another stock in the same industry, closed the last trading session 0.7% higher at $5.70. ALTM has returned 10.1% in the past month.
Arcadium's consensus EPS estimate for the upcoming report has changed -11.2% over the past month to $0.04. Compared to the company's year-ago EPS, this represents a change of -88.2%. Arcadium currently boasts a Zacks Rank of #4 (Sell).
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
AdvanSix (ASIX) : Free Stock Analysis Report
Arcadium Lithium PLC (ALTM) : Free Stock Analysis Report