Avient Stock Scales Fresh 52-week High: What's Driving It?

Avient Corporation’s AVNT shares reached a fresh 52-week high of $51.51 on Sept. 27 before closing at $50.41.

In the past year, the stock has appreciated 44.9% compared with the industry’s 6.1% growth in the same period.

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What’s Driving Avient?

Avient is optimistic about maintaining its strong momentum from the second quarter throughout the remainder of 2024. It continues to focus on its growth strategy, emphasizing innovative materials and processing solutions that align with its sustainability goals while driving progress into the second half of the year.

In the second quarter, Avient reported revenues of $849.7 million, which surpassed the Zacks Consensus Estimate of $841.2 million and increased from $824.4 million in the prior-year period. The company also posted adjusted earnings per share (EPS) of 76 cents, which beat the Zacks Consensus Estimate of 72 cents, driven by growth across all regions and most end markets.

Avient exceeded earnings expectations in three of the last four quarters, with an average earnings surprise of 6.6%. The Zacks Consensus Estimate for 2024 earnings is pegged at $2.65 per share, suggesting 12.3% year-over-year growth. This estimate has been revised upward by 2% in the past 90 days.

Following its strong second-quarter performance, Avient raised its full-year guidance. For the third quarter, the company projects adjusted EPS of 62 cents, calling for a 9% year-over-year increase. Both business segments are expected to contribute to organic sales growth, further bolstering earnings.

While the demand outlook for the second half remains in line with earlier expectations, the impressive second-quarter results have prompted an updated full-year forecast. Avient anticipates adjusted EBITDA to be between $515 million and $540 million, up from the previous range of $510-$535 million. AVNT also raised its adjusted EPS guidance to a range of $2.55-$2.70 compared with the prior estimate of $2.50-$2.65.

Avient Corporation Price and Consensus

Avient Corporation price-consensus-chart | Avient Corporation Quote

AVNT’s Zacks Rank & Key Picks

AVNT currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are IAMGOLD Corporation IAG, Carpenter Technology Corporation CRS, and Eldorado Gold Corporation EGO. IAMGOLD and Carpenter Technology currently sport a Zacks Rank #1 (Strong Buy) each, while Eldorado Gold carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for IAMGOLD’s current-year earnings is pegged at 41 cents per share, indicating a rise of 355.6% from the year-ago levels. IAG’s earnings beat the consensus estimate in each of the trailing four quarters, with the average surprise being 200%. The stock has surged nearly 161.4% in the past year.

The Zacks Consensus Estimate for Carpenter Technology’s current-year earnings is pegged at $6.09 per share, indicating a rise of 28.5% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 15.9%. The stock has skyrocketed nearly 138.8% in the past year.

The Zacks Consensus Estimate for Eldorado Gold’s current-year earnings is pegged at $1.40 per share, indicating a year-over-year rise of 145.6%. EGO beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 430.3%. The company's shares have surged nearly 108.8% in the past year.

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