Chemours’ stock performance
So far in 2017, Chemours (CC) stock has given investors stunning returns. The stock has risen 128% YTD (year-to-date) and outperformed the broad-based SPDR S&P 500 ETF (SPY), which has returned 11.50% during the same period. Similarly, its peers Kronos (KRO) and Tronox (TROX) have provided good returns of 82% and 121.60%, respectively.
Chemours reported strong earnings for two quarters. Chemours’ outlook appears to be positive. The demand for Opteon refrigerants is expected to be strong due to regulatory changes in Europe and the US. Chemours expects higher volume growth for its titanium-dioxide due to a possibly higher price. In its 2Q17 earnings, Chemours revised its EBITDA (earnings before interest, tax, depreciation, and amortization) to $1.30 billion–$1.40 billion from the earlier guidance of $1.15 billion–$1.25 billion. All of these positive factors helped the stock price rise.
Moving averages and RSI
The strong gains in its stock prices caused Chemours to trade 17.30% above its 100-day moving average price of $43.05 as of September 11, 2017. It indicates that an upward trend is prevailing in the stock. Chemours’ RSI (relative strength index) of 65 indicates that the stock isn’t overbought or oversold. An RSI of 70 and above indicates that the stock is overbought, while an RSI of 30 and below indicates that the stock is oversold.
Investors can hold Chemours indirectly by investing in the iShares U.S. Basic Materials ETF (IYM). IYM has invested 1.50% of its holdings in Chemours. The fund has also invested in Monsanto (MON) with a weight of 8.30% as of September 11, 2017.