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LyondellBasell (LYB) Dips More Than Broader Markets: What You Should Know

LyondellBasell (LYB) closed at $72.20 in the latest trading session, marking a -1.2% move from the prior day. This change lagged the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.11%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the oil refiner and chemical company had lost 15.87% over the past month. This has lagged the Basic Materials sector's loss of 12.31% and the S&P 500's loss of 10.4% in that time.

Investors will be hoping for strength from LyondellBasell as it approaches its next earnings release. The company is expected to report EPS of $3.77, down 28.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.66 billion, up 7.57% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.90 per share and revenue of $54.26 billion, which would represent changes of -12.59% and +17.52%, respectively, from the prior year.

Any recent changes to analyst estimates for LyondellBasell should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.26% lower. LyondellBasell is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, LyondellBasell is currently trading at a Forward P/E ratio of 4.6. This valuation marks a discount compared to its industry's average Forward P/E of 8.46.

Investors should also note that LYB has a PEG ratio of 0.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Diversified was holding an average PEG ratio of 1.24 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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