Stocks moved slightly higher this morning as investors consider the possible impact of President Biden’s $2 trillion infrastructure package. Today marks the final trading session of the month as well as the end of the quarter. Month to date the Dow is up 6.9%, the S&P 500 is up 3.9% and the tech-heavy Nasdaq has been the relative underperformer, losing 1.1% since the start of the month.
Our trade alert for today highlights one firm that should see a boost from increased government spending. Read on to find out more.
Element Solutions Inc. (ESI) produces and sells specialty chemical products in the United States, China, and internationally. The company’s Industrial & Specialty segment provides industrial solutions, which include chemical systems, consumable chemicals and energy solutions and serves the aerospace, automotive, construction, consumer electronics, consumer packaged goods, and oil and gas production end markets.
The global specialty chemicals industry took a hit last year as the COVID-19 pandemic brought economic activities to a halt around the world, and ESI was no exception. Nonetheless, the situation seems to be improving as economies are gradually reopening. According to a report by Mordor Intelligence, the specialty chemicals market was valued at $900 billion in 2020 and it is expected to see a CAGR of more than 4% during 2021 to 2026. The report stated that factors like robust growth in construction activities as well as agrochemicals, which is driven by growth in demand for food around the world as population increases, are expected to drive the specialty chemicals market.
Moreover, the global automotive sector is poised to make a comeback this year, which bodes well for the specialty chemicals industry since automotive is a major consumer. Notably, per a report by the IHS Markit, global light vehicle production is expected to increase 14% in 2021 to reach 84.3 million units. The report stated that recovery in demand as well as restoration of manufacturing operations in most regions are expected to drive this uptick.
The consensus estimate for ESI’s current-year earnings has climbed 6.2% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 24%. As of yesterday’s close the stock was $18.45 per share.
Where to invest $1,000 right now...
Before you consider buying ESI, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not ESI.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.