Irving, Texas-based Celanese Corporation (CE) is a global hybrid chemical company. Valued at a market cap of $7.5 billion, Celanese operates a diverse portfolio of innovative products, delivering high-performance solutions to customers across various industries, including automotive, healthcare, and consumer goods.
Companies valued at $10 billion or more are generally described as "large-cap stocks," Celanese is a prime example of this. Celanese Corporation stands out with its diversified portfolio of specialty materials and chemical solutions, catering to industries ranging from automotive to healthcare. Its vertical integration, strong global supply chain, and innovation-driven approach provide a competitive edge, enabling it to deliver high-performance products and maintain cost efficiency. The company’s strategic acquisitions and partnerships further strengthen its market position, while its focus on sustainability and customer-centric solutions enhances its long-term growth potential.
However, it's not all smooth sailing for CE. Its shares are trading 59.8% below their 52-week high of $172.16, which they hit on Mar. 28. The stock has declined 45.8% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) 1.9% gains during the same time frame.
In the longer term, CE has dropped 49.55% over the past six months and 55.5% over the past year. In comparison, the DOWI has gained 9.6% and 14.8% over the same time frames.
CE has been trading below its 200-day moving average since mid-July. Also, it has been trading below its 50-day moving since the end of November, indicating a recent bearish trend.
Macroeconomic challenges and reduced demand from the automotive and industrial sectors have impacted CE’s price performance over the past year. In response, the company plans to reduce its quarterly dividend beginning in Q1 2025 to support deleveraging initiatives. On December 20, CE also hit a 52-week low of $66.73.
Celanese shares dropped 26.3% after the release of its disappointing Q3 earnings on Nov. 4. Celanese reported a 2.8% year-over-year decline in net sales, dropping to $2.6 billion, missed Wall Street’s revenue expectations. The company’s adjusted EPS of $2.44 also fell short of analysts’ forecasts by 14.1%. Additionally, Celanese expects Q4 demand conditions to worsen, with adjusted EPS for the quarter anticipated to drop to $1.25.
Looking at the industry peers’ performance, CE's competitor, Dow Inc. (DOW) has also fallen 27.5% over the past year.
Analysts are neutral about CE's prospects. The stock has a consensus rating of "Hold" from 17 analysts in coverage. The mean price target of $98 indicates a potential upswing of 41.6% from its current levels.
