C-MACC Perspectives No 16 – Stocks
Revising Our Company Views – Relatively
- The revision story may not be fully played out for some chemical companies and performance has been uneven, suggesting that a few stocks are oversold while others likely have downside.
- Some of the “safety stocks” look too safe in terms of earnings revisions and in terms of performance and suggest a greater economic bounce back than is likely – greatest risk Albemarle, Air Products, Sherwin Williams, Ecolab.
- Olin, Covestro and Mosaic have had some dramatic revisions – Mosaic looks oversold but Olin maybe not enough.
- A look at 2H2020 and 1H2021 does not materially change the conclusions but reinforces how positive expectations are for stocks with a durable bias, which we find concerning, given our more conservative views on the rate of recovery.
See PDF Below for all charts referenced