Analyst Ratings: An Update for Scotts Miracle-Gro
Scotts Miracle-Gro (SMG) has risen 4.6% so far in October. It has risen 4.0% so far this year and underperformed the benchmark indexes.
So far in October 2017, Sociedad Química y Minera de Chile (SQM) has risen 5.8%.
FMC (FMC) stock has risen 6.0% over the past month. The stock has significantly outperformed the benchmarks (SPY) (MOO) YTD with a 68.0% rise.
Alcoa Continues Its Rally as China Keeps Its Commitment
China exported 370,000 metric tons of unwrought aluminum in September, compared to 410,000 metric tons in August.
According to consensus estimates compiled by Thomson Reuters, Alcoa is expected to post revenues of $2.97 billion in 3Q17.
Alcoa carries a mean one-year target price of $50.92—7.7% potential upside compared to its closing price on October 13.
Must-know: Factors that influence the cement industry
The cement industry is highly affected by regulatory norms. This is prominent in developed countries where environmental issues are more stringent. This adds to the companies’ costs.
An increased focus on infrastructure development increases cement demand. This effect is prominent in emerging economies. A substantial portion of this demand comes from infrastructure projects. The projects are funded by the government.
The cement industry relies on power. Power and fuel costs account for ~30% of the price of cement when it’s sold. As a result, power and fuel have a major impact on the company’s operating expenditure.
3M: Analysts’ Views Vary before Its 3Q17 Earnings
As of October 17, 2017, 33% of the analysts recommended a “buy,” 47% recommended a “hold,” and 20% recommended a “sell” for 3M stock.
As of October 17, 2017, analysts expect 3M (MMM) to post EPS (earnings per share) of $2.21 in 3Q17, which represents an increase of 2.7% on a YoY basis.
As of October 17, 2017, analysts expect 3M (MMM) to post revenue of $7.93 billion in 3Q17—an increase of 2.80% on a year-over-year basis.
Commodities Are Mixed in the Early Hours on October 18
At 7:00 AM EST on October 18, the WTI crude oil futures contracts for November 2017 delivery were trading at $52.08 per barrel—a gain of ~0.39%.
On October 17, crude oil opened on a stronger note and traded with strength above the opening prices in the early hours.
China imported 430,000 metric tons of unwrought copper and copper products in September 2017, in contrast to 340,000 metric tons in September 2016.
Watch for These Valuation Catalysts as CLF’s 3Q17 Results Approach
Currently, all US steel stocks (SLX) are trading at a discount to their last five-year average multiples.
Cleveland-Cliffs stock is very sensitive to changes in US steel prices as well as seaborne iron ore prices.
Cleveland-Cliffs’ management noted during its 4Q16 earnings call that it is expecting to generate FCF of $550 million in 2017.
How Does SQM Compare to Its Peers?
SQM has outperformed its peers based on PE ratio. The PE ratios of SQM, POT, MOS, and CMP are 20.3x, 11.5x, 9.6x, and 15.4x, respectively, as of November 17, 2015.
Sociedad Química y Minera de Chile (SQM) has a market cap of $5.7 billion. After the company’s 3Q15 earnings report, SQM fell by 5.6% to close at $18.49 per share on November 17, 2015.
Looking ahead, SRC said it has seen the early signs of a recovery in the resource sector, and expects it to continue to be a challenging environment for many commodities-focused businesses throughout 2014 and into 2015.
How Mining Stocks Correlate with Gold as of October 16
The iShares Gold Trust (IAU) and the iShares Silver Trust (SLV) have risen 1.1% and 3.2%, respectively, on a 30-day-trailing basis.
On October 16, 2017, GG, NEM, SBGL, and GFI had implied volatilities of 28.9%, 25.9%, 63%, and 40.4%, respectively.
AGI, SLW, ABX, and KGC currently have RSI levels of 50.3, 74.3, 44.4, and 50, respectively.
Understanding Environmental Regulations and Efficiency Trends in Specialty Chemicals
Greater community awareness toward the degradation of the atmosphere is forcing specialty chemical companies to comply with environmental regulations.
When the specialty chemicals industry entered a mature phase in the mid-1990s, innovation came to be characterized by small steps rather than by big leaps.
Companies in the specialty chemical industry have fewer intermediaries in their distribution range as they move from coatings to more specialized chemicals.