APD

Zacks highlights two Basic Materials stocks with positive Earnings Surprise Prediction (ESP) figures that could beat upcoming earnings expectations. Air Products and Chemicals (APD) holds a Hold rating with a +0.44% ESP ahead of its November 5 earnings release, while Freeport-McMoRan (FCX) has a Buy rating with a +0.63% ESP before reporting on October 27. Both stocks show potential for positive earnings surprises based on recent analyst revisions.

Air Products and Chemicals (APD) has entered a definitive agreement to design, build, and operate Malaysia's first LNG-based air separation unit (ASU) at the Pengerang LNG terminal in Johor. The facility, expected to come online by early 2027, will produce over 600 tons daily of liquid oxygen, nitrogen, and argon for industrial sectors. The project leverages LNG regasification cold energy to reduce energy consumption and emissions while expanding APD's production capabilities in the region.

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat quarterly earnings estimates by comparing the most recent analyst estimates against consensus estimates. Two Basic Materials stocks highlighted are Freeport-McMoRan (FCX) with a +0.48% ESP and a Hold rating, and Air Products and Chemicals (APD) with a +0.79% ESP and a Buy rating, both showing positive signals for potential earnings surprises.

Air Products and Chemicals (APD) has a strong track record of beating earnings estimates, with an average surprise of 4.10% over the past two quarters. The company currently has a positive Earnings ESP of +0.79% combined with a Zacks Rank #2 (Buy) rating, suggesting another earnings beat is likely in its next quarterly report.

Zacks identifies two Basic Materials stocks with positive Earnings Surprise Prediction (ESP) metrics that could beat quarterly earnings expectations. Air Products and Chemicals (APD) holds a #2 Buy rating with a +0.79% ESP ahead of its November 5, 2026 earnings release.

SQM carries a #3 Hold rating with a +16.15% ESP before reporting on November 17, 2026. Both stocks show potential for positive earnings surprises based on recent analyst revisions.

Air Products and Chemicals has been upgraded to a Zacks Rank #2 (Buy) rating, reflecting upward trends in earnings estimates. The company, which sells gases for industrial and medical uses, is positioned in the top 20% of Zacks-covered stocks based on earnings estimate revisions. Analysts have steadily raised estimates over the past three months, with a 1.7% increase in the Zacks Consensus Estimate, suggesting potential near-term stock price appreciation.

Air Products is advancing a $3 billion industrial gas backlog and expanding renewable ammonia strategy through NEOM and Yara partnerships, while implementing $250 million in annual cost savings from headcount reductions. However, the company faces headwinds from weak helium prices. Peer chemical companies including Dow, Eastman Chemical, and Celanese are also pursuing productivity initiatives and cost reduction programs to support earnings growth in 2026.

Air Products and Chemicals (APD) is outperforming its Basic Materials sector peers with a year-to-date return of 10.7% compared to the sector average of 9.8%. The stock holds a Zacks Rank #2 (Buy) rating with improving analyst sentiment, as consensus earnings estimates have increased 1.7% over the past 90 days. However, Teck Resources Ltd has significantly outperformed with a 36.2% year-to-date return.

Dow Inc. reported Q3 2026 earnings of $0.71 per share, beating consensus estimates of $0.64 and showing significant year-over-year improvement. Revenue of $11.27 billion slightly exceeded expectations. However, the stock received a Zacks Rank #3 (Hold) rating due to mixed estimate revisions, and the Chemical - Diversified industry ranks in the bottom 20% of sectors, suggesting near-term performance in line with the market.

DuPont delivered 4% organic sales growth in Q2 2026 driven by high-growth markets including healthcare, water, aerospace, and EVs. The company raised its full-year 2026 EBITDA and earnings guidance following acquisitions of Spectrum Plastics and Donatelle Plastics, and is targeting 3% productivity gains. Peer chemical companies Dow, Air Products, and Eastman Chemical also raised their 2026 guidance.

BASF has launched its GLYTHERMIN DC and PG coolant product lines to address the growing thermal management needs of AI-driven data centers. As server rack power density increases with heat loads exceeding 150 kW, direct liquid cooling demand is rising. The products qualify as NVIDIA DSX Ready Coolants and leverage BASF's expertise in heat transfer fluids and corrosion protection.

Nucor Corporation announced a $105 million expansion of its Crawfordsville, Indiana utility structures facility, subject to regulatory approvals. The project will add over 120,000 square feet of manufacturing space with advanced automation and create 100 new jobs with average annual wages of $87,500. The expansion supports electric grid modernization and increasing electricity demands.

BASF SE has launched new Ultradur RC1 grades containing up to 30% post-consumer recycled content for automotive applications. These glass fiber-reinforced compounds deliver performance comparable to conventional grades while helping customers meet sustainability goals and regulatory requirements for recycled content. The company will showcase the new materials at Fakuma 2026.

Ingevity Corporation (NGVT) shares have gained 33.9% over the past year driven by portfolio transformation, strategic divestitures, and disciplined capital allocation. The company is focusing on high-return markets and targeting $300 million in share repurchases through 2027.

However, challenges include weakness in the APT business segment, macroeconomic uncertainties, and softer North American auto production forecasts. NGVT carries a Zacks Rank #3 (Hold) rating.