Cabot: Eyeing Up A Bearish Position As We Approach Q1 Earnings (Technical Analysis)
Summary
- Cabot Corporation had a recent 25% drop and bearish MACD crossover, signaling potential technical weakness.
- The Reinforcement Materials segment continues to drive growth, but recent EPS and revenue revisions indicate challenges ahead.
- Fiscal 2024 revenue growth was flat, contrasting with a 5-year average of 4.59%, raising concerns about sustaining double-digit EPS growth.
- We expect earnings growth in Reinforcement Materials and a recovery in Performance Chemicals, but revenue growth remains crucial for CBT's long-term success.
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