Chart Industries (GTLS) acquires stake in Transform Materials
Chart Industries, Inc. GTLS recently announced the acquisition of a 5% stake in Transform Materials, a chemical technology company. The transaction was valued at $ 25 million.
The company’s shares rose 3.1% to close yesterday’s trading session at $ 142.35.
In the headlines
Founded in 2014, Transform Materials is engaged in the conversion of natural gas to acetylene and hydrogen using microwave generated plasma. Notably, the company’s patented technology platform facilitates the transformation of methane into acetylene and hydrogen in an environmentally friendly manner.
The investment in Transform Materials will allow Chart Industries to expand its presence and growth prospects in the clean energy markets, in particular hydrogen. With this investment, Chart Industries will have access to customers and business ventures in new regions.
In addition to the aforementioned investment, Chart Industries has entered into a commercial memorandum of understanding with Transform Materials, under which Chart Industries will supply equipment to Transform Materials projects.
Other actions promoting growth
The transaction is in line with Chart Industries’ policy of investing in companies to gain access to new customers, regions and product lines.
In December 2020, she completed the acquisition of Sustainable Energy Solutions, Inc. In addition, the company acquired Worthington Industries, Inc.WOR cryogenic trailer and WOR hydrogen trailer business in Theodore, AL. In addition, it purchased the Microbulk cryogenic reservoir business from IC Biomedical for an undisclosed amount.
Zacks Ranking, Price Performance and Profit Trend
Chart Industries currently has a market cap of $ 5.2 billion and sports a Zacks # 1 (strong buy) ranking. The company should benefit from strong product and order offerings, cost reduction actions and planned investments.
In the past three months, its shares have gained 20.8% from the industry85.7% growth.
Zacks’ consensus estimate for its 2021 earnings has improved 8.9% to $ 3.67 in the past 60 days following seven upward revisions. Additionally, the estimates for 2022 rose 15.9% to $ 5.09 after five upward revisions during the same period.
Other actions to consider
Some other top ranked stocks from the same space are Applied Industrial Technologies, Inc. AIT and Kadant Inc KAI, each wearing a Zacks Rank # 2 (Buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
Applied Industrial has achieved a positive earnings surprise of 21.92% on average over the past four quarters.
Kadant has achieved a positive surprise of 30.95% on average over the last four quarters.
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