Today’s buy recommendation just beat Wall Street estimates by a penny in its latest quarter, and is undervalued relative to its peers. And our sell alert is based on underperformance.
Buy: Cytec Industries (CYT)
from 2 for 1 Stock Split Newsletter
Cytec Industries (CYT) has come down in price since its split announcement in July and, as a result, scored far better in the rankings this time around. Cytec was spun off from American Cyanamid in 1993 and, through divestitures, acquisitions and investments in new technology, has become one of the premier specialty chemical and material manufactures in the world.
CYT’s PE ratio of around 15 is well below the market average (see adjacent column) and also below its peers, as is its price-to-book ratio. The stock pays a 1.1% dividend, recently increased, and net profit and returns are strong. I don’t like the higher-than-average volatility of this stock but this one negative metric is not enough to dissuade me from buying it for the portfolio next week.
Neil Macneale, 2 for 1 Stock Split Newsletter, www.2-for-1.com, 408-210-6881, October 17, 2014