Lubrizol Corp. (LZ) is approaching its 52-week high after posting massive gains in the last 4 months on surging estimates.

Company Description

The Lubrizol Corp. is a specialty chemical company that develops additives for transportation and industrial markets worldwide. The company was founded in 1928 and has a market cap of $4.28 billion.

Shares of LZ are on fire, climbing close to 200% in just the last 4 months after bottoming out in early March. The company’s second-quarter results, reported on July 30, gave this stock an extra shot in the arm.

Second-Quarter Results

Revenue was down from last year to $1.11 billion, but earnings were on target at $2.02 per share, in line with the Zacks Consensus Estimate.

Guidance Raised

In spite of economic uncertainty, the company went ahead and raised its full year guidance to between $5.70 and $6.00 per share excluding special items.

Only 90 days ago, analysts were targeting earnings of $4.24, so this represents a big upward move in earnings projections.


Based on the current-year estimate, this stock is trading with a P/E multiple of 10.7X, a steep discount to the markets multiple of 18X.

The Chart

Shares of LZ are up huge over the last 4 months as estimates continue to rise. Take a look at the big move in the chart below.

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