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

We like POL at current prices for a short-term trade back up to $24.

   

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
PolyOne Corp POL Specialty Chemicals 7.3 +1.58% $21.83

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) in a strong sub-industry and has maintained a positive technical set-up despite the recent market volatilty. Much like other specialty chemicals stocks Eastman Chemical Co. (NYSE:EMN) and A. Schulman Inc. (NASDAQ:SHLM), POL has been on an absolute tear since the beginning of 2012. POL features an uptrending technical set-up that just crossed above its short-term moving averages recently. The stock has immediate support at $22, additional support at $21.40, and an immediate upside to $24. One of our favorite short-term trades is to pick a high-flier that has pulled back off of recent highs, based, and is on the way back up. We wouldn’t hold too long as a pick like POL is risky for an intermediate- or long-term play. However, we like POL at current prices for a short-term trade back up to $24.

We Would Be Buyers:

At the current price (~$22.50), or on a pullback to the 50-day moving average ($22.34).

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. The Company offers 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: 7.3

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 1 Bulls Eye Report: PolyOne Corp. (POL)

PolyOne – Last 12 Months

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

PolyOne – Last Five Years

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