A Bullish 2023 Outlook For Element Solutions Inc (NYSE: ESI) Shares

Element Solutions Inc (NYSE:ESI) shares, rose in value on Friday, 01/20/23, with the stock price up by 2.28% to the previous day’s close as strong demand from buyers drove the stock to $19.74.

Actively observing the price movement in the last trading, the stock closed the session at $19.30, falling within a range of $19.30 and $19.74. The value of beta (5-year monthly) was 1.39 whereas the PE ratio was 27.38 over 12-month period. Referring to stock’s 52-week performance, its high was $24.84, and the low was $15.31. On the whole, ESI has fluctuated by 9.06% over the past month.

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With the market capitalization of Element Solutions Inc currently standing at about $4.77 billion, investors are eagerly awaiting this quarter’s results, scheduled for Feb 20, 2023 – Feb 24, 2023. The company’s Forward Dividend Ratio is 0.32, with its dividend yield at 1.62%. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $0.32, which is expected to increase to $0.36 for fiscal year $1.44 and then to about $1.56 by fiscal year 2023. Data indicates that the EPS growth is expected to be 4.30% in 2023, while the next year’s EPS growth is forecast to be 8.30%.

Analysts have estimated the company’s revenue for the quarter at $624.28 million, with a low estimate of $546.09 million and a high estimate of $669.7 million. According to the average forecast, sales growth in current quarter could jump down -3.50%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2023, the company’s y-o-y revenues would reach $2.61 billion, representing an increase of 8.80% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that ESI’s technical picture suggests that short-term indicators denote the stock is a Hold on average. However, medium term indicators have put the stock in the category of 50% Buy while long term indicators on average have been pointing out that it is a 50% Buy.

The stock’s technical analysis shows that the PEG ratio is about 4.40, with the price of ESI currently trading nearly 5.85% and 5.16% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 64.16, while the 7-day volatility ratio is showing 1.73% which for the 30-day chart, stands at 2.11%. Furthermore, Element Solutions Inc (ESI)’s beta value is 1.36, and its average true range (ATR) is 0.44.

A comparison of Element Solutions Inc (ESI) with its peers suggests the former has fared considerably weaker in the market. ESI showed an intraday change of 2.28% in last session, and over the past year, it shrunk by -17.44%%. Additionally, there is a loss of -0.11% for BP p.l.c. (BP) in last trading while the stock has seen an overall depriciation of 10.59%% over the past year. The PE ratio stands at 27.38 for Element Solutions Inc. Other than that, the overall performance of the S&P 500 during the last trading session shows that it gained 1.89%. Meanwhile, the Dow Jones Industrial Improved by 1.00%.

Data on historical trading for Element Solutions Inc (NYSE:ESI) indicates that the trading volumes over the past 10 days have averaged 1.06 million and over the past 3 months, they’ve averaged 1.21 million. According to company’s latest data on outstanding shares, there are 244.70 million shares outstanding.

Nearly 7.40% of Element Solutions Inc’s shares belong to company insiders and institutional investors own 93.50% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 3.18 million shares as on Oct 13, 2022, resulting in a short ratio of 2.19. According to the data, the short interest in Element Solutions Inc (ESI) stood at 1.30% of shares outstanding as of Oct 13, 2022; the number of short shares registered in Sep 14, 2022 reached 2.51 million. The stock has risen by 8.52% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the ESI stock heading into the next quarter.