(SCL) Stepan Company’s Full-Year Estimates Rise Significantly
Stepan Company (SCL) continues to outperform, seeing a higher share price than that of about 3 weeks ago when it was last featured as a Growth and Income pick. The stock outpaced the market by approximately 15% during those 3 weeks. The company also boasts strong fundamentals, including a ROE of 19%.
Forecasts Remain Bullish
Analysts polled by Zacks are calling for third-quarter earnings of $1.12 per share, up from 54 cents over the past 60 days. Results for the third quarter are scheduled to be released in late October.
The full-year Zacks Consensus Estimate of $4.76 per share was increased from $2.77 over the past 2 months.
Earnings per share are expected to grow 15% over the next 3 – 5 years, versus an industry average of 10%.
Strong Fundamental Comparisons
The company’s return on equity (ROE) of 19% tops the industry average of 12%. Stepan’s net profit margin of 4% is in line with the industry average. SCL also offers a dividend yield of 1.5%, exceeding the industry average of 0.7%.
Zacks Investment Research
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