AdvanSix Stock Pops 21% in 6 Months: What's Driving the Rally?

Key TakeawaysASIX shares gained 21.2% the past six months, compared to the industry decline of 6.6%.AdvanSix stock gains beat the S&P 500 rise of 3.9% during the same time period.ASIX offers a dividend yield of 2.4%, above the S&P 500 average dividend yield of about 2%.AdvanSix Inc.’s ASIX shares have gained 21.2% over the past six months. The company has also outperformed the Zacks Chemicals Specialty industry’s 6.6% decline over the same time frame. ASIX has also topped the S&P 500’s roughly 3.9% rise over the same period.Let’s take a look into the factors that are driving ASIX stock. Image Source: Zacks Investment ResearchASIX Gains on Improving Nylon Demand & Favorable PricesAdvanSix is benefiting from its differentiated product portfolio, exposure to diverse end markets and favorable demand and pricing. It is expected to gain from improved nylon demand conditions and the growth of its differentiated products. The favorable agricultural industry fundamentals also bode well for ammonium sulfate. ASIX delivered top and bottom-line growth and cash flow improvement in the third quarter of 2024 on the back of higher year-over-year pricing, improved North American nylon industry conditions and a constructive global acetone supply and demand environment. ASIX sees global acetone supply and demand to remain balanced to tight. North American nylon industry spreads are expected to modestly improve amid stable end-market demand.Sound Financial Health Bodes Well for AdvanSix StockASIX has a healthy balance sheet and generates substantial cash flows, which allows it to drive shareholder value and fund growth initiatives. The company ended the third quarter of 2024 with cash and cash equivalents of roughly $17.3 million. Operating cash flow climbed around 175% year over year to $57.3 million while free cash flow increased by $31.1 million from the prior-year quarter to $26.8 million. ASIX offers a healthy dividend yield of 2.4% (above the S&P 500′s average dividend yield of roughly 2%) at the current stock price. It has a five-year annualized dividend growth rate of 31.9%. The company's dividend is perceived to be safe and reliable, backed by strong cash flows and sound financial health.AdvanSix Price and Consensus AdvanSix price-consensus-chart | AdvanSix QuoteASIX’s Zacks Rank & Other Key PicksASIX currently carries a Zacks Rank #3 (Hold).Better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, ICL Group Ltd ICL and ATI Inc. ATI. While CRS sports a Zacks Rank #1 (Strong Buy), both ICL and ATI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Carpenter Technology beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 186% in the past year. The Zacks Consensus Estimate for ICL Group’s current-year earnings has increased by 8.8% in the past 60 days. ICL beat the consensus estimate in each of the last four quarters with the average surprise being 18.1%. ATI beat the consensus estimate in three of the last four quarters while missing once. In this time frame, it has delivered an earnings surprise of roughly 3.7%, on average. ATI has gained around 28% in the past year.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ATI Inc. (ATI): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report ICL Group Ltd. (ICL): Free Stock Analysis Report AdvanSix (ASIX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks