Yahoo Finance Strength Seen in Chemours (CC): Can Its 24.1% Jump Turn into More Strength?
Chemours (CC) shares ended the last trading session 24.1% higher at $33.64. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.9% loss over the past four weeks.
Chemours’ stock popped after the company along with DuPont and Corteva reached an agreement in principle to settle all PFAS-related drinking water claims of public water systems that serve the vast majority of the U.S. population. The companies agreed to establish and contribute a combined $1.185 billion to a settlement fund with Chemours contributing 50% and DuPont and Corteva collectively contributing the balance 50%. The settlement is subject to approval by the United States District Court for the District of South Carolina upon finalization of a definitive agreement, which is expected within the second quarter of 2023.
This chemical company is expected to post quarterly earnings of $1.12 per share in its upcoming report, which represents a year-over-year change of -40.7%. Revenues are expected to be $1.75 billion, down 8.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Chemours, the consensus EPS estimate for the quarter has been revised 6.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CC 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 >>>>
Chemours belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Olin (OLN), closed the last trading session 6.2% higher at $51.35. Over the past month, OLN has returned -9.8%.
Olin's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $1.33. Compared to the company's year-ago EPS, this represents a change of -51.8%. Olin currently boasts a Zacks Rank of #3 (Hold).
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