The Chemours Company (NYSE:CC) is trading at $30.99. The forward EPS is 4.59, placing the forward PE at 7.05. Coupled with robust growth, the stock is discounted and therefore a strong buy.
Chemours is a diversified chemical company. The stock is A-rated for value and momentum investing styles. Last year’s EPS was $4.46. This year the EPS is expected at $4.59. Going forward, the EPS is projected to grow at a robust rate of 13.51%. The strong growth puts the PEG ratio at 0.45. The stock is certainly undervalued.
There is another reason for investment in Chemours. The dividend yield is 3.17%. This is above that of many large stocks in the market today. The value comes with a higher beta of 1.79 for the mid-value company.
Chemours is trading at the support level of $30
Source – TradingView
Chemours has been bullish for the better part of this year, even as other stocks declined. The 52-week range is between $22 and $44. Over the last three weeks, the stock declined from a high of $44.95. The stock was testing the resistance level of $45. The current price is $30.99. These declines are purely due to bear market fears.
We think that the declines caused discounts that may not have occurred for the company. Chemours is likely to establish support at $30. It is therefore at the bottom. Our analysis indicates that the company is a buy.
Summary
Chemours is a strong buy. The company expects strong EPS growth for the next 3 to 5 years. The dividend yield is attractive. The price is highly discounted at $30.99 and is at the bottom.
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