Bull’s Eye Report: PolyOne Corp. (POL)

Buy POL 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.

Why We Like The Stock:

PolyOne Corp. (NYSE:POL) 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). Unlike its competitors in the specialty chemicals field such as Dow Chemical (NYSE:DOW), Eastman Chemical (NYSE:EMN), Ashland (NYSE:ASH), and A. Schulman (NASDAQ:SHLM), POL has held up quite well since some weakness hit the sub-industry back in mid-February. Rather than breaking down like many other specialty chemicals stocks did, POL rallied in early March to maintain a positive technical set-up and solidify its outperformance in the space. POL has pulled back off of its late March highs of a little over $25, which represents the immediate upside for a short-term trade.

We have recommended POL before, just before the March rally, and it’s back down to a great entry point at current prices ($23.60), resting comfortably on its 50-day moving average after a brief pullback over the last few weeks. With some support at $23 and a beautiful set-up, we think PolyOne Corp is Monday’s most compelling buy.

We Would Be Buyers:

At the current price (~$23.60), or on a pullback to $23.20.

Company Profile:

PolyOne Corporation  is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins. The company is a specialized developer and manufacturer of additives, liquid colorants, and fluoropolymer and silicone colorants. They offer approximately 52,000 polymer solutions to approximately 14,000 customers across the globe. The company has 60 manufacturing sites and nine distribution facilities in North America, Europe, Asia and South America. The company operates in four segments: Global Specialty Engineered Materials; Global Color, Additives and Inks; Performance Products and Solutions, and PolyOne Distribution. In February 2011, it sold its 50% interest in SunBelt Chlor Alkali Partnership (SunBelt). On December 21, 2011, it acquired ColorMatrix Group, Inc. In December 2012, the company acquired Glasforms Inc.

Stock Rating: 7.1

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.

PolyOne – Last Three Months

POL 2 1 Bulls Eye Report: PolyOne Corp. (POL)

PolyOne – Last 12 Months

POL 2 2 Bulls Eye Report: PolyOne Corp. (POL)

PolyOne – Last Five Years

POL 2 3 Bulls Eye Report: PolyOne Corp. (POL)

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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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