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International Flavors & Fragrances (IFF) Hits 52-Week High

Shares of International Flavors & Fragrances Inc. IFF reached a new 52-week high of $128.13 during its trading session on May 16. This apex improved upon the last 52-week high of $127.53 on May 10.

The flavors and fragrances specialist closed its trading session at $127.80 on May 16. This reflected a year-to-date return of 7.3%. The trading volume for the session was 0.75 million shares. Earnings estimate revisions for 2016 and 2017, along with an expected earnings growth rate of 8.2% for the next five years indicate the stock’s potential to further drive up its price.

Growth Drivers

International Flavors & Fragrances impressed investors with a positive earnings surprise of 4.26% in first-quarter 2016. Also, earnings of $1.47 per share exceeded the year-ago tally by 1.4%. Revenues were up 1.1% year over year in the quarter or climbed 6% excluding the adverse forex impact. The company’s share price has grown roughly 6.6% since the first-quarter earnings release on May 9.

For 2016, International Flavors & Fragrances expects currency-neutral net sales to grow roughly 3.5−4.5%, while adjusted earnings per share will likely increase 6.5−8.5%. Positive contribution from acquired assets will likely be 1.5%.

Also, International Flavors & Fragrances stands well positioned to benefit from the growing demand for flavors and fragrance products, especially in the emerging countries. In addition, the company’s research and development wing is constantly endeavoring to develop innovative compounds for suitably meeting the rising demand.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for International Flavors & Fragrances grew 2% to $5.51 for 2016 and 0.7% to $5.96 for 2017. These estimates represent year-over-year growth of 4.9% for 2016 and 8.1% for 2017%.
 
With a market capitalization of $10.2 billion, International Flavors & Fragrances currently carries a Zacks Rank #3 (Hold). Some stocks worth considering in the chemical industry include Daqo New Energy Corp. DQ, AgroFresh Solutions, Inc. AGFS and Chemtura Corporation CHMT. While Daqo New Energy sports a Zacks Rank #1 (Strong Buy), both AgroFresh Solutions and Chemtura Corporation carry a Zacks Rank #2 (Buy).

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CHEMTURA CORP (CHMT): Free Stock Analysis Report
 
DAQO NEW ENERGY (DQ): Free Stock Analysis Report
 
INTL F & F (IFF): Free Stock Analysis Report
 
AGROFRESH SOL (AGFS): Free Stock Analysis Report
 
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