Aggressive Growth: OMNOVA Solutions (OMN)

OMNOVA Solutions Inc. (OMN) just posted a record-setting quarter to mark the sixth consecutive earnings surprise. Estimates continue to climb leaving OMN with a Zacks #1 Rank (Strong Buy).

Company Description

OMNOVA Solutions makes emulsion polymers and other specialty chemicals that have decorative and functional uses. The company serves commercial, industrial and residential markets.

Record Quarter

On Jun 29 OMNOVA reported quarterly results that showed net income of just over $15 million, triple the level one year ago. Earnings per share broke down to 29 cents, beating the Zacks Consensus Estimate by a dime.

The company saw a very nice 40% increase in sales, to $65 million, driven by higher pricing and more volume.

Estimates Climbing

Following the news, analysts revised their full-year estimates. OMNOVA is expected to earn 92 cents this year, up 8 cents. Next year’s estimates are averaging 96 cents, a 3 cent improvement.

Given the 68 cents earned last year, the year-over-year growth rates are now 36% and 4%, respectively.


Shares of OMN are trading at a nice discount. Currently you can own a piece of OMNOVA for less than 9 times forward earnings. The PEG ratio is a miniscule 0.2 times.

The Chart

Even with the great quarterly report, shares are still hitting resistance at this level. However, with momentum going the right way the stock has a good chance to break out and set a new 52-week high.

Read the April 1st Feature Here

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OMNOVA SOLUTION (OMN): Free Stock Analysis Report
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About Bill Wilton 56 Articles

Affiliation: Zacks Investment Research

Bill Wilton is the Growth Stock Strategist for He is also the Editor in charge of the market-beating Zacks Growth Trader service.

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