Bull’s Eye Report: Cytec Industries (CYT)

CYT is an attractive buy at current levels

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Cytec Industries Inc CYT Specialty Chemicals 8.2 +3.79% $70.89

Why We Like The Stock:

Cytec Industries (NYSE:CYT) is our most compelling buy today due to the fact that it is a “top-rated stock” (in terms of earnings strength and company/industry performance) in a highly rated sub-industry, specialty chemicals. Specialty chemicals stocks were surprise performers in 2012, and they continue to exhibit strength in 2013. CYT, along with other specialty chemicals stocks such as Ashland (NYSE:ASH), PolyOne Corp. (NYSE:POL), Stepan Co. (NYSE:SCL), and Westlake (NYSE:WLK), has been trending higher for over a year now. If we look at the intermediate-term trend, CYT has been making higher highs and lower lows since October 2012 on a pretty consistent basis. The stock has pulled back off of its highs at $75.25, which makes for a favorable entry point at its current price around $72.60. We like the fact that the stock is hovering above its 50-day moving average, which gives it some technical wiggle room should it not bounce back up to the highs right away. With an immediate upside to ~$76, and a downside of only ~$2 (with our stop at $70.89), we like this specialty chemicals stock for a low-risk, high-reward short term trade.

We Would Be Buyers:

At the current price (~$72.60), or on a pullback to the 50-day moving average ($71.27).

Company Profile:

Cytec is a specialty chemicals and materials company focused on developing, manufacturing and selling value-added products. Cytec has four business segments: Engineered Materials, In-Process Separation, Additive Technologies, and Coating Resins. Its products serve a diverse range of end markets, including aerospace composites, structural adhesives, automotive and industrial coatings, electronics, inks, mining and plastics. It uses its technology and application development expertise to create chemical and material solutions that are formulated to perform specific and important functions for its customers.

Stock Rating: 8.2

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Cytec Industries – Last Three Months

CYT 1 300x168 Bulls Eye Report: Cytec Industries (CYT)
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Cytec Industries – Last 12 Months

CYT 2 300x168 Bulls Eye Report: Cytec Industries (CYT)
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Cytec Industries -  Last Five Years

CYT 3 300x168 Bulls Eye Report: Cytec Industries (CYT)
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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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