Could LyondellBasell Stock Be Making a Comeback?



LyondellBasell’s stock price

LyondellBasell (LYB) stock has made a strong comeback since it announced its 3Q16 earnings on November 1. (Readers can check out LyondellBasell’s Price Slips on Lower-Than-Expected Earnings for a full analysis of LYB’s 3Q16 earnings.) The stock price fell after the release, but since then, as of December 15, 2016, the stock has gained approximately 11.7%.

In November alone, LYB gained 13.5% and outperformed peers Dow Chemical (DOW), Celanese (CE), Eastman Chemical (EMN), and the broader market as represented by the SPDR S&P 500 ETF (SPY), which have seen returns of 3.6%, 8.8%, 4.5%, and 3.7%, respectively.

This positive performance by LYB can be attributed to external factors like the surge in US markets and the rise in crude oil prices. Investors are expecting that the unusually high maintenance issues faced by LYB will be over by the end of the year and expect LYB to perform even better.

LyondellBasell’s stock price surge has widened its 100-day moving average price gap. As of December 15, LYB was trading ~10.3% above its 100-day moving average price of $80.5.

Article continues below advertisement

Relative strength index

LYB’s 14-day RSI (relative strength index) of 58 indicates that the stock is neither overbought nor oversold. Remember, an RSI score of 70 means that a stock has moved temporarily into an overbought situation, whereas, an RSI score below 30 indicates that a stock has moved temporarily into an oversold position. On December 15, 2016, LYB closed ~28.6% above its 52-week low of $69.10 and ~5.2% below its 52-week high of $93.75.

On a YTD (year-to-date) basis, LYB has gained 2.2%, underperforming Dow Chemical, Celanese, and Eastman Chemical (EMN), which have gained 13.3%, 23.1%, and 13.9, respectively, YTD as of December 15, 2016.

Continue to the subsequent parts of this series for a closer look at LyondellBasell’s latest dividend announcement, its analysts’ latest recommendations, and its most recent valuations.


More From Market Realist