Home Most Popular Investing Axalta Coating Systems: Stock Making Gains Amidst Strong Performance

Axalta Coating Systems: Stock Making Gains Amidst Strong Performance

Axalta Coating Systems: Stock Making Gains Amidst Strong Performance

Axalta Coating Systems Ltd., known for its AXTA shares, has seen a remarkable surge of 8.6% in the last three months, outpacing the industry’s rise of 3.3% and the S&P 500’s 0.6% growth over the same period. The Zacks Rank #1 (Strong Buy) stock has demonstrated a solid performance, underpinned by a series of positive factors driving its ongoing success.

Robust Quarterly Performance

Axalta’s third-quarter results indicate a 15.4% year-over-year increase in earnings and a 5.7% year-over-year growth in sales, reaching $1.3 billion. This compelling performance was further highlighted by a 32% jump in income from operations, an operating margin improvement of 250 basis points (bps) to 12.5%, and an adjusted EBIT margin of 14.3%, up by 240 bps from the previous year. The Performance Coatings segment reported a 2.2% increase in net sales, while Mobility Coatings experienced a significant 13% growth in net sales, particularly in Greater China.

Solidifying its stance in the market, Axalta witnessed a substantial increase in cash provided by operating activities, reaching $210 million compared to $80 million in the same period last year. The company also executed a share repurchase program, strategically expanded its portfolio, and raised its full-year 2023 earnings outlook, signifying its vision and potential for substantial growth.

Earnings Outlook and Market Sentiment

The Zacks Consensus Estimate for AXTA’s 2023 earnings is pegged at $1.58, showcasing a year-over-year growth of 6.7%. The consensus estimate for the current year has seen an upward revision of 8.2% in the past 60 days, signaling a positive market sentiment and establishing Axalta as a force to be reckoned with in the industry.

Other Key Picks in the Market

Moreover, alongside Axalta, other top-ranked stocks in the Basic Materials space include Universal Stainless & Alloy Products, Inc. (USAP), The Andersons Inc. (ANDE), and Alamos Gold Inc. (AGI), each carrying a Zacks Rank #2 (Buy). Each of these companies has demonstrated strong performance and are contributing to the positive sentiment in the market.

These companies have showcased impressive year-over-year growth in earnings, with USAP leading at 170.3%, followed by ANDE at 89.3% and AGI at 89.3%. This positive outlook is further substantiated by their impressive stock rallies in the past year, which demonstrates the collective strength of these companies in the market.

Zacks’ Expert Picks for Potential Growth

Zacks Investment Research has identified promising stocks with significant upside potential, with the Director of Research hand-picking a standout investment that could yield explosive results. This timely investment is anticipated to rival or surpass recent success stories of other stocks that have witnessed substantial growth, representing a compelling opportunity for investors to capitalize on.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Zacks Investment Research

To read this article on Zacks.com click here.