Huntsman (HUN) may very well be a strong addition to your portfolio given a notable revision within
Huntsman (HUN) may very well be a strong addition to your portfolio given a notable revision within the firm’s earnings estimates. Whereas the inventory has been gaining recently, the development would possibly proceed since its earnings outlook remains to be enhancing.
The upward development in estimate revisions for this chemical firm displays rising optimism of analysts on its earnings prospects, which ought to get mirrored in its inventory value. In spite of everything, empirical analysis reveals a robust correlation between tendencies in earnings estimate revisions and near-term inventory value actions. Our inventory ranking instrument — the Zacks Rank — has this perception at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Robust Purchase) to a Zacks Rank #5 (Robust Promote), has a powerful externally-audited observe report of outperformance, with Zacks #1 Ranked shares producing a median annual return of +25% since 2008.
Consensus earnings estimates for the subsequent quarter and full yr have moved significantly increased for Huntsman, as there was robust settlement among the many overlaying analysts in elevating estimates.
The chart under reveals the evolution of ahead 12-month Zacks Consensus EPS estimate:
12 Month EPS
Present-Quarter Estimate Revisions
The earnings estimate of $0.42 per share for the present quarter represents a change of +44.83% from the quantity reported a yr in the past.
During the last 30 days, the Zacks Consensus Estimate for Huntsman has elevated 32.29% as a result of six estimates have moved increased in comparison with no destructive revisions.
Present-12 months Estimate Revisions
For the complete yr, the earnings estimate of $0.89 per share represents a change of -41.83% from the year-ago quantity.
The revisions development for the present yr additionally seems fairly promising for Huntsman, with six estimates shifting increased over the previous month in comparison with no destructive revisions. The consensus estimate has additionally acquired a lift over this timeframe, growing 13.26%.
Favorable Zacks Rank
The promising estimate revisions have helped Huntsman earn a Zacks Rank #2 (Purchase). The Zacks Rank is a tried-and-tested ranking instrument that helps buyers successfully harness the ability of earnings estimate revisions and make the fitting funding determination. You’ll be able to see the entire listing of at the moment’s Zacks #1 Rank (Robust Purchase) shares right here.
Our analysis reveals that shares with Zacks Rank #1 (Robust Purchase) and a couple of (Purchase) considerably outperform the S&P 500.
Backside Line
Whereas robust estimate revisions for Huntsman have attracted respectable investments and pushed the inventory 5.9% increased over the previous 4 weeks, additional upside should be left within the inventory. So, chances are you’ll take into account including it to your portfolio immediately.
Need the newest suggestions from Zacks Funding Analysis? In the present day, you possibly can obtain 7 Finest Shares for the Subsequent 30 Days. Click on to get this free report
Huntsman Company (HUN): Free Inventory Evaluation Report
To learn this text on Zacks.com click on right here.
Zacks Funding Analysis
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.