Risky, But A Risk Worth Taking? – Axalta Coating Systems Ltd. (AXTA), DowDuPont Inc. (DWDP)

10 analysts out of 16 Wall Street brokerage firms rate Axalta Coating Systems Ltd. (NYSE:AXTA) as a Buy, while 0 see it as a Sell. The rest 6 describe it as a Hold. AXTA stock traded higher to an intra-day high of $26.51. At one point in session, its potential discontinued and the price was down to lows at $26.03. Analysts have set AXTA’s consensus price at $29.94, effectively giving it a 14.76% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $34 (up 30.32% from current price levels). AXTA has a 16% ROE, higher than the 12.86% average for the industry. The average ROE for the sector is 8.49%.

It is expected that in Mar 2019 quarter AXTA will have an EPS of $0.23, suggesting a -14.81% growth. For Jun 2019 is projected at $0.38. It means that there could be a 5.56% growth in the quarter. Yearly earnings are expected to rise by 4.69% to about $1.34. As for the coming year, growth will be about 12.69%, lifting earnings to $1.51. RSI after the last trading period was 47.01. AXTA recorded a change of 0.85% over the past week and returned 15.49% over the last three months while the AXTA stock’s monthly performance revealed a shift in price of -3.51%. The year to date (YTD) performance stands at 11.4%, and the bi-yearly performance specified an activity trend of -10.99% while the shares have moved -17.2% for the past 12 months.

Axalta Coating Systems Ltd. (AXTA) currently trades at $26.09, which is lower by -1.47% its previous price. It has a total of 233.74 million outstanding shares, with an ATR of around 0.46. The company’s stock volume dropped to 1.31 million, worse than 2.02 million that represents its 50-day average. A 5-day increase of about 0.85% in its price means AXTA is now 11.4% higher on year-to-date. The shares have surrendered $43425.91 since its $32.99 52-week high price recorded on 16th of April 2018. Overall, it has seen a growth rate of -17.2 over the last 12 months. The current price per share is $4.51 above the 52 week low of $21.58 set on 18th of December 2018.

Axalta Coating Systems Ltd. (NYSE:AXTA)’s EPS was $0.34 as reported for the December quarter. In comparison, the same quarter a year ago had an EPS of $0.37. That means that its growth in general now stands at -8%. Therefore, a prediction of $0.32 given by the analysts brought a positive surprise of 6%. AXTA Dec 19 quarter revenue was $1.17 billion, compared to $1.17 billion recorded in same quarter last year, giving it a -1% growth rate. The company’s $0 billion revenue decline that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

DowDuPont Inc. (NYSE:DWDP) shares depreciated -1.56% over the last trading period, taking overall 5-day performance up to 0.94%. DWDP’s price now at $55.03 is greater than the 50-day average of $54.94. Getting the trading period increased to 200 days, the stock price was seen at $61.04 on average. The general public currently hold control of a total of 2.24 billion shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 2.25 billion. The company’s management holds a total of 0.1%, while institutional investors hold about 72.6% of the remaining shares. DWDP share price finished last trade 0.7% above its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -9.93%, while closing the session with 0.21% distance from 50 day simple moving average.

DowDuPont Inc. (DWDP) shares were last observed trading -23.5% down since August 29, 2018 when the peak of $71.93 was hit. Last month’s price growth of 3.13% puts DWDP performance for the year now at 2.9%. Consequently, the shares price is trending higher by 12.56%, a 52-week worst price since Dec. 26, 2018. However, it is losing value with -21.48% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $54.16 and $54.6. The immediate resistance area is now $55.77 Williams’s %R (14) for DWDP moved to 35.26 while the stochastic %K points at 74.28.

DWDP’s beta is 0; meaning investors could reap lower returns, although it also poses lower risks. The company allocated $1.64 per share from its yearly profit to its outstanding shares. Its last reported revenue is $20.1 billion, which was 0% versus $20.07 billion in the corresponding quarter last year. The EPS for Dec 19 quarter came in at $0.88 compared to $0.81 in the year-ago quarter and had represented 9% year-over-year earnings per share growth. DWDP’s ROA is 2%, lower than the 4.08% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 5.32%.

Estimated quarterly earnings for DowDuPont Inc. (NYSE:DWDP) are around $0.93 per share in three months through March with $1.34 also the estimate for June quarter of the fiscal year. It means the growth is estimated at -16.96% and -2.19%, respectively. Analysts estimate full-year growth to be -1.46%, the target being $4.05 a share. The upcoming year will see an increase in growth by percentage to 14.32%, more likely to see it hit the $4.63 per share. The firm’s current profit margin over the past 12 months is 4.5%. DWDP ranks lower in comparison to an average of 7.84% for industry peers; while the average for the sector is 7.23%.