Ingevity has been putting up amazing profit growth numbers. Shares of Ingevity shot up 21% on Tuesday after it reported 38% second quarter earnings growth on Monday. That beat estimates by 20%.
That 38% growth, although still robust, followed massive quarterly earnings gains of 575% and 115% the prior two quarters.
As a result, on Wednesday Ingevity's IBD Relative Strength (RS) Rating rose to a higher percentile, with a 25-point surge from 61 to 86. The upgraded RS Rating shows that Ingevity stock is in the top 14% of all stocks for price performance over the last 52 weeks, making it a good watchlist candidate.
Ingevity Earnings Tops, Revenue Needs Work
Ingevity's revenue lags its earnings growth, although it's moving in the right direction. Ingevity reported a 7% dip in Q2 revenue "primarily due to the strategic exit of lower margin end markets in Industrial Specialties," the company said in its earnings report. That was improved from a 16% drop the prior quarter.
Analysts expect the company will report smaller revenue decreases in coming quarters and return to growth in the first quarter of 2026, according to FactSet.
Among its other ratings, North Charleston, N.C.-based Ingevity has an 81 EPS Rating out of 99, and a strong 86 Composite Rating. Its B+ Accumulation/Distribution Rating on an A+ to E scale shows that institutional investors like ETFs and mutual funds are fairly eager buyers of its stock.
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The maker of proprietary specialty chemicals has its fingers in a lot of different pies, ranging from technology that makes laying asphalt easier to making steel stronger and treating plants to make them healthier.
For example, Ingevity's Nuchar brand activated carbon product treats soil used in grass farming. It absorbs excess sprays farmers use, which it says on its website helps keep "seedlings safe during planting."
Among Top 5 In Its Industry
Ingevity earns the No. 5 rank among its peers in the 40-stock Chemicals-Specialty industry group. Solaris Energy Infrastructure, a maker of proppant used in shale oil fracking, is the No. 1-ranked stock in the group.
The exclusive Relative Strength Rating from Investor's Business Daily tracks share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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