Here's What Makes Ingevity Stock a Solid Choice Right Now

Ingevity Corporation’s NGVT stock looks promising at the moment. Its shares have popped roughly 41% over the past six months. NGVT is expected to benefit from the strategic repositioning of its Performance Chemicals segment, strategic acquisitions and actions to drive growth.We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it is poised to carry the momentum ahead.Let's see what makes NGVT stock an attractive investment option at the moment.NGVT’s Earnings Estimates NorthboundEarnings estimates for NGVT for 2025 have been going up over the past 60 days, reflecting analysts’ optimism. The Zacks Consensus Estimate for 2025 has increased by 29%.NGVT’s Positive Earnings Surprise HistoryIngevity has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 202.9%, on average.Ingevity’s Superior Return on Equity (ROE)ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Ingevity is 41.4%, above the industry’s level of 15.5%.Strategic Repositioning and Acquisitions to Aid NGVTIngevity is taking several actions to expand capacity and drive long-term growth. It remains committed to investing organically. Ingevity is also committed to capturing the maximum value for its products.The company is expected to benefit from the repositioning of its Performance Chemicals segment, which is aimed at lowering exposure to lower-margin end markets. The move includes consolidating segment operations at its North Charleston facility by moving oleo chemical refining to the North Charleston site’s secondary refinery as well as the closure of its Crossett facility. These actions further simplify the segment’s manufacturing footprint and create significant cost savings. NGVT realized roughly $84 million of savings from repositioning actions in 2024. It sees around $10-$25 million in incremental savings in 2025.Ingevity remains focused on enhancing shareholder value through improved EBITDA, improving margins and strong cash flows. The company is seeing the benefits of the repositioning on its earnings and cash flows. Operational improvements leading to lower input costs and better manufacturing efficiency are also aiding performance in its Performance Materials unit. The acquisition of the Capa caprolactone business enabled the company with a new technology platform to drive revenue and earnings growth. Capa has a strong and market-leading business that focuses on high-growth end-use applications. NGVT, in July 2024, expanded its Capa caprolactone distribution network by selecting Ultrapolymers Group as the distributor for Capa Bioplastics in Europe. The acquisition of Ozark Materials has also strengthened the company’s position in the paving construction industry.Ingevity Corporation Price and Consensus Ingevity Corporation price-consensus-chart | Ingevity Corporation QuoteNGVT’s Zacks Rank & Other Key PicksNGVT currently carries a Zacks Rank #1 (Strong Buy).Other top-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. AXTA, Carpenter Technology Corporation CRS and Orla Mining Ltd. ORLA. While AXTA sports a Zacks Rank #1, CRS and ORLA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Axalta Coating’s 2025 earnings is pegged at $2.51, indicating a rise of 6.8% from year-ago levels. AXTA beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.3%, on average. Carpenter Technology beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared roughly 169% in the past year. The Zacks Consensus Estimate for Orla Mining’s 2025 earnings is pegged at 43 cents, indicating a rise of 80.6% from year-ago levels. The consensus estimate for ORLA’s 2025 earnings has increased by 30.3% in the past 60 days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Carpenter Technology Corporation (CRS): Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA): Free Stock Analysis Report Ingevity Corporation (NGVT): Free Stock Analysis Report Orla Mining Ltd. (ORLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks