This specialty chemicals company will release its quarterly earnings report on February 22. The consensus estimate is for EPS of $0.41 per share. Earnings are forecast to grow at a double-digit rate for 2016. The shares were recently noted as “undervalued” by Motley Fool.
Chemtura (CHMT)
From Smart Investing in Turbulent Times
Chemtura (CHMT) manufactures specialty chemicals. CHMT is a vastly undervalued aggressive growth stock. CHMT reached new highs in November, and is now having a price correction with the overall market. Once the share price rises above 29.50 (+8%), I expect it to meet short-term upside resistance at 32 (+17%).
EPS growth expectations remain strong at 92% and 27% in 2015 and 2016 (December year-end), with a 2016 P/E of 14. The stock’s chart shows a classic double-bottom pattern in January, indicating that the worst is likely over for the share price. I expect the stock to begin its recovery by trading between 24 and 27.50 this winter. Rating: Buy.
Crista Huff, Smart Investing in Turbulent Times, cabotwealth.com, 800-642-0619, January 5 and 26, 2016