For Immediate Release
Chicago, IL – September 23, 2010 – Stocks featured in this week’s Zacks Industry Rank analysis include DuPont (DD) and Dow (DOW).
Zacks Industry Rank Analysis is written by Dirk Van Dijk, CFA, Chief Equity Strategist for Zacks.com.
The Right Chemistry
The Chemical industry appears to have the right solution. Three of the major industries related to chemicals are showing up as very attractive, based on the Zacks rank.
The Zacks industry classifications are very fine, with 256 different industries tracked. It is not particularly noteworthy if a single small industry shows up doing well; a single firm with good news can propel a one or two firm industry to the top (or bottom) of the charts. It is interesting when you see a cluster of similar industries at the top of the list. The same holds true for the bottom of the list.
The best performer is, not surprisingly, the smallest of the three based on the number of companies. The Chemicals-Plastics industry has only six firms. It is in second place among the 256 industries tracked with an average rank of 1.83, unchanged from last week, although the ranking improved from third place last week. Of those six names, two have the envied Zacks #1 Rank, and three have the very attractive Zacks #2 Rank. Since only the best 20% of firms get either a number on or 2 rank, that is a very impressive performance.
Next best is Chemicals-Diversified, which not only has far more firms in it at 31, but the firms in it also tend to be much bigger and include the familiar household names like DuPont (DD) and Dow (DOW). It is in 26th place, which is an improvement of five spots over the last week. The average score improved to 2.44 from 2.50. For such a large industry (by number of firms), that is very impressive. There are seven #1-ranked and nine #2-ranked firms among the 31 in the industry.
Finally, there is the Specialty Chemical industry, which is in 44th place with an average score of 2.57 down from 2.64 last week, an improvement of 10 spots. It is also a large industry with 28 firms, including six with #1 ranks and four with #2 ranks.
The Chemical industry is highly cyclical, and has benefited as the economy has improved. For most of the larger players, the operations are global (and many of the firms are foreign based and trade through ADR’s so it is more a question of global economic growth than just U.S. economic growth.
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Contact: Dirk Van Dijk, CFA
Company: Zacks.com
Phone: 312-265-9211
Email: pr@zacks.com
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