Orion Stock (NYSE:OEC), Trade Ideas

Orion

Orion Engineered Carbons

Orion SA is a manufacturer of carbon black products. Carbon black is a powdered form of carbon used to create the desired physical, electrical and optical qualities of various materials. The company's operating segments are Specialty Carbon Black and Rubber Carbon Black. It generates maximum revenue from the Rubber Carbon Black segment. Rubber Carbon Black segment is used in the reinforcement of rubber in tires and mechanical rubber goods. The Specialty Carbon Black segment is used as pigments and performance additives in coatings, polymers, printing, and special applications. Geographically, it derives a majority of its revenue from Germany.

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Orion S.A. (NYSE: OEC) recently broke ground on a plant in Texas that will be the sole facility in the United States producing acetylene-based conductive additives for lithium-ion batteries and other applications critical to the global transition to electrification.


Orion Breaks Ground on Texas Battery Materials Plant

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Although U.S. stocks closed mostly higher on Monday, there were a few notable insider trades.

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Orion SA

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Orion S.A. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oec#NYSE">OEC</a>) recently broke ground on a plant in Texas that will be the sole facility in the United States producing acetylene-based conductive additives for lithium-ion batteries and other applications critical to the global transition to electrification. 
The location in La Porte, southeast of Houston, will generate much high-skilled employment in construction and technological areas, as well as contribute breakthrough technology to the American economy. The battery additives manufactured by Orion&#39;s facility will be extremely clean, with one-tenth the carbon footprint of other regularly used materials. 
The plant in La Porte will be a critical step in increasing the regional supply of conductive additives in the rapidly expanding U.S. battery market. All batteries require conductive additives. They allow for a more efficient flow of electricity and improve the life of lithium-ion batteries, the most valuable component of electric vehicles. The material is also vital in high-voltage cables used in wind and solar farms. 
The additives manufactured at the La Porte plant will be made from acetylene, a colorless gas that Orion&#39;s manufacturing method converts into powder of the exceptional purity required by major battery manufacturers. Equistar Chemicals LP, a LyondellBasell subsidiary, will supply the acetylene from an adjacent site. 
Orion&#39;s facility in La Porte is similar to one located in Berre-l&#39;Etang, southern France. LyondellBasell supplies acetylene to the site as well. The LaPorte project&#39;s major equipment procurement and off-site fabrication are already well underway. Field construction works are speeding up, and the facility is anticipated to start operations in the second quarter of 2025. 
Shares of OEC have lost 3.4% over the past year compared with a 7.2% decline of its industry.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/6f/64862.jpg?v=212907768" /> 
Image Source: Zacks Investment Research
<h3>Zacks Rank &amp; Key Picks</h3>
OEC currently carries a Zacks Rank #5 (Strong Sell). 
Better-ranked stocks in the basic materials space include Denison Mines Corp. (AMEX:DNN), Carpenter Technology Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crs#NYSE">CRS</a>) and Ecolab Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ecl#NYSE">ECL</a>). 
Denison Mines sports a Zacks Rank #1 (Strong Buy). DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company&#39;s shares have soared 112.6% in the past year. 
Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company&#39;s shares have soared 80.8%% in the past year. 
The Zacks Consensus Estimate for Ecolab current-year earnings is pegged at $6.43 per share, indicating a year-over-year rise of 23.4%. ECL, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company&#39;s shares have rallied roughly 34.4% in the past year.
<a href="https://www.zacks.com/stock/news/2254227/orion-oec-breaks-ground-on-texas-battery-materials-plant?cid=CS-BENZ-FT-analyst_blog|company_news_-_corporate_actions-2254227">To read this article on Zacks.com click here.</a>

Mizuho analyst John Roberts initiates coverage on Orion (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) with a Neutral rating and announces Price Target of $25.

Price Target

Initiation

Analyst Ratings

Mizuho Initiates Coverage On Orion with Neutral Rating, Announces Price Target of $25

For full year 2024, the company sees an Adjusted EBITDA range of&nbsp;$340 million&nbsp;to&nbsp;$360 million, up&nbsp;5 percent&nbsp;at the midpoint, compared with 2023.

Guidance

Orion Projects Full Year 2024 Adjusted EPS Of $2.05-$2.20 (Est $2.50)

Orion (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) reported its Q4 earnings results on Wednesday, February 14, 2024 at 04:35 PM.
Here's what investors need to know about the announcement.
<h3>Earnings</h3>
Orion missed estimated earnings by 48.48%, reporting an EPS of $0.17 versus an estimate of $0.33.
Revenue was up $6.10 million from the same period last year.
<h3>Past Earnings Performance</h3>
Last quarter the company beat on EPS by $0.03 which was followed by a 3.4% increase in the share price the next day.
Here's a look at Orion's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.46</td>
<td>0.52</td>
<td>0.53</td>
<td>0.17</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.49</td>
<td>0.53</td>
<td>0.74</td>
<td>0.26</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>502.84M</td>
<td>504.71M</td>
<td>515.48M</td>
<td>441.88M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>466.20M</td>
<td>458.80M</td>
<td>500.70M</td>
<td>462.10M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Orion <a href="https://www.benzinga.com/quote/OEC/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings

Orion: Q4 Earnings Insights

Orion Engineered Carbons (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) reported quarterly earnings of $0.17 per share which missed the analyst consensus estimate of $0.34 by 50 percent. The company reported quarterly sales of $468.20 million which beat the analyst consensus estimate of $421.69 million by 11.03 percent. This is a 1.32 percent increase over sales of $462.10 million the same period last year.

Earnings Beats

Earnings Misses

Orion Engineered Carbons Q4 2023 Adj EPS $0.17 Misses $0.34 Estimate, Sales $468.20M Beat $421.69M Estimate

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Earnings Scheduled For February 14, 2024

Orion Engineered Carbons (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) is set to give its latest quarterly earnings report on Wednesday, 2024-02-14. Here's what investors need to know before the announcement.
Analysts estimate that Orion Engineered Carbons will report an earnings per share (EPS) of $0.33. 
Orion Engineered Carbons bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
Last quarter the company beat EPS by $0.03, which was followed by a 3.4% increase in the share price the next day.
Here's a look at Orion Engineered Carbons's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.46</td>
<td>0.52</td>
<td>0.53</td>
<td>0.17</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.49</td>
<td>0.53</td>
<td>0.74</td>
<td>0.26</td>
</tr>
<tr>
<td>Price Change %</td>
<td>3.4%</td>
<td>5.41%</td>
<td>7.94%</td>
<td>9.9%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1707843726_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Orion Engineered Carbons were trading at $23.8 as of February 12. Over the last 52-week period, shares are up 5.96%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release. 
<a href="https://www.benzinga.com/quote/OEC/earnings">To track all earnings releases for Orion Engineered Carbons visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings Outlook For Orion Engineered Carbons

CORRECTION: Orion Expects 2023 Results To Land At Lower End Of Adj. EBITDA Guidance Range Of $330M-$350M

Orion Expects 2023 Results To Land At Lower End Of Adj. EBITDA Guidance Range Of $330M-$340M

UBS analyst Joshua Spector maintains Orion (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) with a Buy and lowers the price target from $33 to $32.

UBS Maintains Buy on Orion, Lowers Price Target to $32

UBS analyst Joshua Spector maintains Orion (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) with a Buy and raises the price target from $31 to $33.

UBS Maintains Buy on Orion, Raises Price Target to $33

As of Dec. 8, 2023, five stocks in the materials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock&#39;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#39;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the <a href="https://www.benzinga.com/topic/rsi"> RSI is above 70</a>, according to <a href="https://pro.benzinga.com/"> Benzinga Pro</a>.
Here&rsquo;s the latest list of major overbought players in this sector.
<h3>Ranpak Holdings Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pack#NYSE">PACK</a>)</h3>
<ul>
<li>On Oct. 31, Ranpak Hldgs posted a narrower-than-expected third-quarter loss. &quot;We are pleased to report continued improvement in our operating and financial profile as volumes increased year over year and we continue to see gross margin expansion,&quot; said Omar M. Asali, Chairman and Chief Executive of Ranpak. The company&rsquo;s stock jumped around 51% over the past month and has a <a href="https://www.benzinga.com/quote/PACK">52-week high of $8.24 </a>.</li>
<li>RSI Value: 71.40</li>
<li>PACK Price Action: Shares of Ranpak Holdings gained 7% to close at $4.61 on Thursday.</li>
</ul>
<h3>Stepan Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/scl#NYSE">SCL</a>)</h3>
<ul>
<li>On Oct. 18, Stepan reported a third-quarter FY23 sales decrease of 22% year-on-year, to $562.226 million. &quot;Specific to the third quarter, Surfactant unit margins were lower versus the prior year due to less favorable product mix, high-cost raw material inventory carryover, and pricing pressure in Latin America from imported products. Specialty Product unit margins were significantly lower due to high-cost inventory and pricing pressure related to increased MCT import activity,&quot; said Scott Behrens, President and Chief Executive Officer. The company&rsquo;s stock gained around 17% over the past month and <a href="https://www.benzinga.com/quote/SCL"> has a 52-week high </a> of $114.97.</li>
<li>RSI Value: 82.17</li>
<li>SCL Price Action: Shares of Stepan gained 4.2% to close at $89.34 on Thursday.</li>
</ul>
<h3>Orion S.A. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oec#NYSE">OEC</a>)</h3>
<ul>
<li>On Nov. 2, Orion Engineered Carbons posted upbeat quarterly earnings. &quot;I am pleased to announce that we delivered $77 million of Adjusted EBITDA this quarter in the face of weak demand in many of our key markets. In addition, for the nine months, we achieved record adjusted diluted earnings per share up $0.06, to $1.76 from prior year,&quot; said Corning Painter, Orion&rsquo;s chief executive officer. The company&rsquo;s stock jumped around 22% over the past month and has a <a href="https://www.benzinga.com/quote/OEC"> 52-week high </a> of $26.91.</li>
<li>RSI Value: 81.81</li>
<li>OEC Price Action: Shares of Orion gained 4% to close at $25.78 on Thursday.</li>
</ul>
<h3>Ferroglobe PLC (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gsm#NASDAQ">GSM</a>)</h3>
<ul>
<li>On Nov. 7, Ferroglobe posted better-than-expected third-quarter earnings. &ldquo;The company continued to perform well in a difficult market environment,&rdquo; commented Dr. Marco Levi, Ferroglobe&rsquo;s Chief Executive Officer. The company&rsquo;s stock gained around 30% over the past month and has a 52-week high is $6.24.</li>
<li>RSI Value: 75.06</li>
<li>GSM Price Action: Shares of Ferroglobe gained 1.7% to close at $6.11 on Thursday.</li>
</ul>
<h3>H.B. Fuller Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ful#NYSE">FUL</a>)</h3>
<ul>
<li>On Sept. 27, H.B. Fuller posted weaker-than-expected quarterly earnings. &quot;In the third quarter we successfully drove a double-digit increase in adjusted EBITDA year-on-year and increased adjusted EBITDA margin meaningfully, demonstrating the strength of our business model and ability to increase profitability regardless of market conditions,&quot; said Celeste Mastin, H.B. Fuller president and chief executive officer. The company&rsquo;s stock jumped around 12% over the past month and <a href="https://www.benzinga.com/quote/FUL"> has a 52-week high </a> of $80.29.</li>
<li>RSI Value: 75.80</li>
<li>FUL Price Action: Shares of H.B. Fuller gained 1.7% to close at $79.11 on Thursday.</li>
</ul>
&nbsp;
Read More: <a href="https://www.benzinga.com/news/earnings/23/12/36127699/how-to-earn-500-a-month-from-campbell-soup-stock-following-upbeat-earnings"> How To Earn $500 A Month From Campbell Soup Stock Following Upbeat Earnings </a>

Orion Engineered Carbons (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) reported quarterly earnings of $0.49 per share which beat the analyst consensus estimate of $0.46 by 6.52 percent. This is a 14.04 percent decrease over earnings of $0.57 per share from the same period last year. The company reported quarterly sales of $466.20 million which missed the analyst consensus estimate of $502.84 million by 7.29 percent. This is a 14.16 percent decrease over sales of $543.10 million the same period last year.

Orion Engineered Carbons Q3 Adj EPS $0.49 Beats $0.46 Estimate, Sales $466.20M Miss $502.84M Estimate

<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Finvestor.orioncarbons.com%2Fhome%2Fdefault.aspx&amp;esheet=53559517&amp;newsitemid=20230921694636&amp;lan=en-US&amp;anchor=Orion+S.A.&amp;index=1&amp;md5=8a8f3d0e481c232bccdccef93fc588d0">Orion S.A.</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>), a global specialty chemicals company, today announced the opening of its Battery Innovation Center in Germany – a major expansion serving the rapidly growing lithium-ion battery industry powering the global shift to electrification.
The new center is located at Orion's main innovation hub in Cologne. The facility includes a full array of state-of-art production, testing and diagnostic equipment. The center will accelerate Orion's tailor-made product and process development in close cooperation with customers.
"The growth potential for conductive additives is huge. We are committed to serving the needs of battery producers with innovation and a global production network. Our new Battery Innovation Center will further position Orion as a leader in the industry," Orion CEO Corning Painter said. "The battery lab will also broaden and intensify our already extensive network of collaboration with universities, customers and other partners in the battery industry."
Along with the Battery Innovation Center, Orion will establish a new specialized organization for its battery business, led by Dr. Adrian Steinmetz, who joins Orion on Oct. 1 from BASF. Based in Frankfurt, Germany, he will serve as global vice president for conductive additives.
Dr. Steinmetz's key areas of expertise include business development, leading global and regional specialty chemical businesses and their technologies, as well as asset management. He earned a doctorate degree in organic chemistry from University of Göttingen, Germany.
"We are excited that Dr. Steinmetz will provide the global leadership that we need to continue the strong momentum we have in the conductive materials market," said Dr. Sandra Niewiem, senior vice president and global head of Orion's Specialty business. "He will bring to Orion more than 25 years of experience in several commercial and technical roles in battery materials and specialty chemicals in Europe, Asia and the Americas."
In the Battery Innovation Center, Dr. Amaury Augeard will lead the technical team as the head of energy systems. He joined the company from the Lotus Group and brings significant industrial lithium-ion battery expertise. Dr. Augeard holds a doctorate in electrical engineering from the University of Clermont-Ferrand, France.
With a plant in France, Orion is the sole producer of acetylene-based conductive additives in Europe. In the U.S., the company is building a similar plant, which will be the only facility of its kind in the country. The site in La Porte, Texas, will quadruple Orion's manufacturing capacity for acetylene-based conductive additives, which are in high demand by lithium-ion battery producers.

Global

Orion S.A. Opens Battery Innovation Center In Germany

Corning F Painter, Chief Executive Officer at Orion (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>), reported a large insider buy on August 22, according to a new SEC filing. 
What Happened: A Form 4 filing from the <a href="https://www.sec.gov/Archives/edgar/data/0001609804/000095014223002287//Archives/edgar/data/1609804/000095014223002287/0000950142-23-002287-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday showed that Painter purchased 15,000 shares of Orion. The total transaction amounted to $323,850. 
Orion shares are trading up 1.05% at $21.57 at the time of this writing on Tuesday morning.
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<h3>The Importance of Insider Transactions</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision. 
In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Important Transaction Codes</h3>
<a href="https://www.benzinga.com/money/investing-tools">Investors</a> prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001609804">Check Out The Full List Of Orion's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Massive Insider Trade At Orion

Although U.S. stocks closed mostly higher on Monday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#39;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"> Benzinga&#39;s insider transactions </a> platform.
<h3>Energy Transfer </h3>
<ul>
<li>The Trade: Energy Transfer LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/et#NYSE">ET</a>) Executive Chairman Kelcy Warren <a href="https://www.benzinga.com/quote/PI/analyst-ratings"> acquired a total of 3,000,000 shares </a> an average price of $12.96. To acquire these shares, it cost around $38.89 million.</li>
<li>What&rsquo;s Happening: Energy Transfer penned a merger agreement to acquire Crestwood Equity Partners in an all-equity of around $7.1 billion.</li>
<li>What Energy Transfer Does: Energy Transfer owns a large platform of crude oil, natural gas, and natural gas liquid assets primarily in Texas and the U.S. midcontinent region.</li>
</ul>
<h3>Orion </h3>
<ul>
<li>The Trade: Orion S.A. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oec#NYSE">OEC</a>) CEO Corning F Painter acquired a total of 15,000 shares at an average price of $21.59. To acquire these shares, it cost around $323,850.</li>
<li>What&rsquo;s Happening: Orion Engineered Carbons reported upbeat second-quarter earnings.</li>
<li>What Orion Does: Orion SA is a supplier of carbon black, a solid form of carbon produced as powder or pellets. The company&#39;s operating segments are Specialty Carbon Black and Rubber Carbon Black.</li>
</ul>
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
<h3>Westlake Chemical Partners </h3>
<ul>
<li>The Trade: Westlake Chemical Partners LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wlkp#NYSE">WLKP</a>) SVP, Olefin Material &amp; Corp Pr Andrew Kenner <a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 5,000 shares </a> at an average price of $22.08. To acquire these shares, it cost around 110,410.</li>
<li>What&rsquo;s Happening: Westlake Chemical posted downbeat quarterly earnings.</li>
<li>What Westlake Chemical Partners Does: Westlake Chemical Partners LP is a part of the chemical industry in the United States. Its operations are conducted through OpCo, it acquires and develop ethyelene production facilities, which convert ethane into ethylene.</li>
</ul>
&nbsp;
Check This Out: <a href="https://www.benzinga.com/news/23/08/33961257/top-5-energy-stocks-that-may-collapse-in-q3"> Top 5 Energy Stocks That May Collapse In Q3 </a>

JP Morgan analyst Jeffrey Zekauskas maintains Orion (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) with a Neutral and lowers the price target from $26 to $21.

JP Morgan Maintains Neutral on Orion, Lowers Price Target to $21

Credit Suisse analyst John Roberts maintains Orion (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) with a Outperform and lowers the price target from $27 to $26.

Credit Suisse Maintains Outperform on Orion, Lowers Price Target to $26

Orion Sees FY23 Adj. EBITDA $320M-$350M

Orion Engineered Carbons (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEC#NYSE">OEC</a>) reported quarterly earnings of $0.53 per share which beat the analyst consensus estimate of $0.52 by 1.92 percent. This is a 8.62 percent decrease over earnings of $0.58 per share from the same period last year. The company reported quarterly sales of $458.80 million which missed the analyst consensus estimate of $504.71 million by 9.10 percent. This is a 15.23 percent decrease over sales of $541.20 million the same period last year.

Orion Engineered Carbons Q2 Adj $0.53 Beats $0.52 Estimate, Sales $458.80M Miss $504.71M Estimate

Choice Equities Capital Q4 2023 Letter

The chemical industry's growth prospects look promising thanks to the growing demand across various sectors and the integration of technology. Therefore, it could be wise to buy fundamentally strong chemical stocks Hawkins (HWKN), Orion (OEC), and Oil-Dri Corporation of America (ODC). Read more... The chemical industry plays a crucial part in diverse applications across several end-use industries. Given the industry's steady growth prospects, investors could buy chemical stocks Hawkins, Inc. (<a href="https://stocknews.com/stock/HWKN/">HWKN</a>), Orion S.A. (<a href="https://stocknews.com/stock/OEC/">OEC</a>), and Oil-Dri Corporation of America (<a href="https://stocknews.com/stock/ODC/">ODC</a>).
The U.S. chemical industry is a $486 billion enterprise that is responsible for more than a quarter of the U.S. GDP. The industry supports the production of almost all commercial and household goods and is essential to economic growth. The US chemical industry is the <a href="https://www.cisa.gov/sites/default/files/2023-02/chemical_sector_profile_final_508_2022_0.pdf">world's second-largest chemical producer</a>, and 13% of the world's chemicals come from the US.
The global specialty chemicals market is anticipated to witness a <a href="https://www.grandviewresearch.com/industry-analysis/specialty-chemicals-market">CAGR of 5.2%</a> until 2030. This is attributed to a growing demand for construction, water treatment, and electronics chemicals, along with advancements in process technology and trade liberalization. The growth is also attributed to growing demand for pharmaceuticals, food and feed additives, and flavors and fragrances, among others.
Advancements in <a href="https://www2.deloitte.com/us/en/pages/energy-and-resources/articles/future-of-digitalization-in-the-chemical-industry.html">digital technology</a> are transforming the strategic landscape for chemical manufacturers. Producers are expected to use various digital tools to create innovative materials and streamline efficient formulations – evaluating, optimizing, and incorporating ingredient recipes and proprietary knowledge.
Consequently, the <a href="https://www.globenewswire.com/en/news-release/2023/06/06/2683143/0/en/Chemical-Industry-Forecast-2023-2032-Insights-Into-Market-Size-Growth-Rate-And-Drivers-By-The-Global-Market-Model.html">global chemical market</a> is anticipated to grow at a CAGR of 8.8% until 2032.
With these favorable trends in mind, let's delve into the fundamentals of the three best <a href="https://stocknews.com/category/chemicals/">Chemicals</a> stocks, beginning with the third choice.
Stock #3: Hawkins, Inc. (<a href="https://stocknews.com/stock/HWKN/">HWKN</a>)
HWKN operates as a specialty chemical and ingredients company in the United States. It operates through three segments: Industrial, Water Treatment, and Health and Nutrition.
HWKN's trailing-12-month asset turnover ratio of 1.46x is 114.8% higher than the industry average of 0.70x, while its trailing-12-month net income margin of 7.91% is 35.3% higher than the industry average of 5.85%.
For the fiscal third quarter that ended December 31, 2023, HWKN's sales stood at $208.50 million. Its operating income increased 21% year-over-year to $18.47 million Its net income increased 38.8% year-over-year to $14.89 million and EPS increased 38.5% year-over-year to $0.72.
Street expects revenue to be $217.5 million for the fiscal fourth quarter ending March 2024. Its EPS is expected to grow at 24% year-over-year to $0.68 for the same quarter. The company surpassed consensus EPS estimates in each of the trailing four quarters, which is impressive.
The stock has gained 45.1% over the past nine months to close the last trading session at $59.08.
HWKN's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its promising outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has a C grade for Value, Growth, Quality, Stability and Sentiment. It is ranked #29 in the 84-stock <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry.
Beyond what is stated above, we've also rated HWKN for Momentum. Get all HWKN ratings <a href="https://stocknews.com/stock/HWKN/">here</a>.
Stock #2: Orion S.A. (<a href="https://stocknews.com/stock/OEC/">OEC</a>) 
OEC manufactures and sells carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for polymers, coatings, and battery electrodes.
On January 22, 2024, OEC announced it had completed upgrading its air emissions control technology at all four of its U.S. carbon black plants, the biggest sustainability-related initiative in the company's history.
The stock's trailing-12-month EBIT margin of 11.65% is 1.2% higher than the industry average of 11.511%. Its levered FCF margin of 10.08% is 127.7% higher than the 4.42% industry average.
For the fiscal third quarter that ended September 30, 2023, OEC's net sales came in at $466.20 million. Its <a href="https://www.investopedia.com/terms/a/adjusted-ebitda.asp">adjusted EBITDA</a> came in at $77.30 million. Additionally, the company's adjusted net income came in at $28.90 million, while adjusted EPS stood at $0.49.
The consensus revenue estimate of $421.69 million for the fiscal fourth quarter ending December 2023. Likewise, the consensus EPS estimate of $0.34 for the same quarter is estimated to grow 29% year-over-year to $0.34. Moreover, the company surpassed the consensus EPS estimates in each of four trailing quarters.
Shares of OEC have gained 13.3% over the past three months to close the last trading session at $22.68.
It's no surprise that OEC has an overall rating of B, which equates to Buy in our proprietary rating system.
OEC has a B grade for Value and Quality. It is ranked #19 in the same industry.
In addition to the POWR Ratings highlighted above, one can access OEC's ratings for Stability, Sentiment, Momentum, and Growth <a href="https://stocknews.com/stock/OEC/">here</a>.
Stock #1: Oil-Dri Corporation of America (<a href="https://stocknews.com/stock/ODC/">ODC</a>) 
ODC develops, manufactures, and markets sorbent products in the United States and internationally. It operates in two segments, Retail and Wholesale Products Group, and Business to Business Products Group.
For the fiscal first quarter that ended October 31, 2023, ODC's net sales increased 13.1% year-over-year to $111.44 million. Its gross profit grew 38.9% from the year-ago value to $30.99 million. Additionally, net income and net income per share grew 105.4% and 100% from the prior year's quarter to $10.74 million and $1.61, respectively.
Shares of ODC have gained 50.4% over the past nine months, closing the last trading session at $63.22.
ODC's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to Buy in our proprietary rating system.
ODC has a B grade for Growth, Stability, and Sentiment. It is ranked #15 in the same industry.
<a href="https://stocknews.com/stock/ODC/">Click here</a> to access the additional ODC ratings (Momentum, Quality, and Value).
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HWKN shares were trading at $59.41 per share on Wednesday afternoon, up $0.33 (+0.56%). Year-to-date, HWKN has declined -15.63%, versus a 4.61% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/hwkn-oec-odc-3-underrated-chemical-stocks-with-buying-potential/>3 Underrated Chemical Stocks With Buying Potential</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Underrated Chemical Stocks With Buying Potential

A rating of 71 puts Orion SA (OEC) near the top of the Basic Materials sector according to InvestorsObserver.Orion SA's score of 71 means that it ranks higher than 71% of stocks in the sector. In addition, its overall score of 37 ranks it higher than 37% of all stocks. OEC has an Overall Score of 37. Find out what this mea

Will Orion SA (OEC) Stay at the Top of the Basic Materials Sector?

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CROX

HWKN

MGNI

SHAK

STGW

Press Releases

Orion S.A. Reports Nine Month and Third Quarter Financial Results

Orion S.A. Leads Industry with Four Carbon Black Plants Awarded ISCC PLUS

Orion S.A. Announces Full Year 2023 Earnings Release Date and Conference Call Information

Orion S.A. Completes all Air Emissions Technology Projects and Updates Business Conditions

Orion S.A. Announces Financial Results For The Full Year Ended December 31, 2023

Orion S.A. Declares Interim Quarterly Dividend

Orion S.A. Announces its 2024 Annual General Meeting Date and Record Date

Orion S.A. Maintains Gold Sustainability Rating by EcoVadis

Orion S.A. Breaks Ground on Battery Materials Plant in Texas

Orion S.A. Announces First Quarter 2024 Earnings Release Date and Conference Call Information

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