LyondellBasell Stock Rebounded, Underperformed Its Peers
LyondellBasell’s stock performance
LyondellBasell (LYB) stock has made a good comeback after spending most of the second quarter in negative returns on a year-to-date basis. As of September 7, 2017, LyondellBasell has returned 6.90%. It has underperformed the large-based SPDR S&P 500 ETF (SPY), which returned 10.40% during the same period. LyondellBasell also underperformed its peers Eastman Chemical (EMN), Westlake Chemical (WLK), and Olin (OLN), which returned 12.80%, 37.50%, and 20.50%, respectively.
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LyondellBasell’s turnaround in its stock performance was primarily driven by its better-than-expected earnings. LyondellBasell reported EPS (earnings per share) of $2.82—compared to analysts’ expectations of $2.56. Management doesn’t expect major planned maintenance for the rest of fiscal 2017. We can expect most of the plants to possibly work at full capacity and increase their productivity. Also, LyondellBasell’s announcement about the new share repurchase program and increased dividend rate in 2Q17 helped increase the stock price.
Moving averages and RSI
The strong gains in LyondellBasell’s stock price caused the stock to trade 8.10% above the 100-day moving average price of $84.84, which indicates the trend reversal. LyondellBasell’s 14-day RSI (relative strength index) of 64 indicates that the stock isn’t overbought or oversold. If the RSI is above 70, it indicates that the stock temporarily moved into an overbought position. If the RSI is below 30, it indicates that the stock temporarily moved into an oversold position.