Hudson Technologies (HDSN) Hits 52-Week High: What’s Driving? | Rare Techy
Shares of Hudson Technology HDSN hit a new 52-week high of $11.85 on November 28, before closing the session at $10.86.
The company, which sports a Zacks Rank #1 (Strong Buy), has a market capitalization of approximately $509 million. This is 30% higher than HDSN’s long-term growth of 16%.
Shares of Hudson Technologies have risen 188.1% over the year against the industry’s decline of 10.5% and the S&P 500’s fall of 13.4%.
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What is driving Hudson Technology?
Hudson Technologies is seeing its stock price rise, thanks to strong results this year. The company’s earnings exceeded the Zacks Consensus Estimate in all four quarters, by 297%. The company has posted improved earnings in the past four quarters.
Hudson Technologies’ third quarter 2022 revenue improved 48% year over year to $89.5 million. This is mainly due to the increase in selling prices for some refrigerators.
So far the company has not seen any price appreciation for some refrigerators sold. This boosted its earnings per share by 65% to 56 cents in the quarter.
Backed by improved profitability and strong free cash flow, the company has reduced all of its debt, thereby strengthening its balance sheet and improving its financial flexibility.
HDSN is expected to benefit from the increased demand for refrigerants brought about by the reduction in the production and consumption of Hydrofluorocarbons (HFCs) in the United States as mandated by the AIM Act. HFCs are greenhouse gases used in refrigerators, air conditioners, and other applications.
The 10% reduction mandated for 2022 and 2023 and the 40% reduction in female production beginning in 2024 have increased the industry’s reliance on renewable heating to meet its HFC needs. . Hudson Technologies has been a leader in heating technology for nearly three decades and is well equipped to meet this demand. Hopefully this will contribute to its share price performance going forward.
Shares of Hudson Technologies have also increased in recent months. The Zacks Consensus Estimate for 2022 has increased to 21%, while that for 2023 has increased to 25%. Favorable revisions in estimates will stir investor confidence in stocks.
Other funds to consider
Other top sites in the Industrial Products category Enerpac Tool Group EPAC, Hubbell HUBB and WW Grainger GWW. While EPAC and HUBB sport a Zacks Rank of 1, GWW currently has a Zacks Rank #2 (Buy). You will see The full list of today’s Zacks #1 stocks is here.
Enerpac Utilities Group is up 44.6% for the year. Estimates have not changed over the past 30 days. EPAC shares are up 14.6% on the year. The shock was 3.4% after four quarters, on average.
Hubbell’s surprise trailing fourth-quarter dividend yield of 10.6%. The fund has gained 28.4% over the past year. HUBB’s revenue growth estimate for 2022 is 6.7%. The approval rating has been updated by 4.8% over the past 30 days.
WW Grainger has a 10.1% surprise after four quarters, on average. The Zacks Consensus Estimate for GWW’s 2022 earnings is a 16.6% year-over-year increase from last year. Estimates have increased by 4.1% over the past 30 days. The fund has jumped 22% in the past year.
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