ICL Group Ltd’s ICL shares have gained 25.9% in the past three months, outperforming its industry’s decline of 3.7%.

It has also topped the S&P 500’s roughly 3.8% rise over the same period.

Image Source: Zacks Investment Research

Let’s dive into the factors behind this Zacks Rank #2 (Buy) stock’s price appreciation.

Strong Q3 Results, Raised Guidance Fuel Optimism for ICL

Third-quarter adjusted earnings per share (EPS) of 11 cents beat the Zacks Consensus Estimate of 8 cents. ICL also reported quarterly revenues of $1,753 million, which exceeded the Zacks Consensus Estimate of $1,732.7 million.

ICL raised its guidance for full-year 2024 and now sees specialties-driven EBITDA of between $0.95-$1.05 billion. This marks an increase from the previous guidance of $0.8-$1 billion. ICL plans to limit its total annual potash sales volumes for this year to 4.6 million metric tons, which is in line with 2023 sales volumes. While the company still faces headwinds related to geopolitical uncertainties, it remains focused on developing its innovative product portfolio pipeline and executing targeted cost and efficiency efforts.

ICL’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 18.1%. Earnings estimates for ICL for 2024 have been going up over the past 60 days and remained stable for 2025 over the same period.

The company recently introduced VeriQuel R100, a breakthrough phosphorus-based product. This innovative reactive phosphorus flame retardant is intended for rigid polyurethane insulation products such as sheathing, in-wall and PIR roofing, which is the chosen material for more than 70% of commercial roofs. ICL spent more than $2 million on R&D for this product, which offers a more sustainable alternative to conventional additive flame retardants. As the need for greener construction materials grows, VeriQuel R100 will play an important role in delivering a high-performance, ecologically friendly option without sacrificing fire safety. 

ICL also announced a follow-on investment in Plantible Foods as part of its Series B funding round. This investment builds on ICL's previous participation in Plantible's Series A round, strengthening the two companies' partnership. ICL's investment in Plantible Foods highlights its dedication to creating sustainable and innovative food sector solutions. The development of breakthrough ingredients, such as Rovitaris Binding Solution, is aligned with these industry trends and helps position ICL to meet changing customer preferences and capitalize on new opportunities.

Other Key Picks

Other top-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, Sylvamo Corporation SLVM and Silvercorp Metals Inc. SVM. 

Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 158.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

Sylvamo, which currently carries a Zacks Rank #2, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.7%, on average. SLVM’s shares have rallied 62.5% over the past year. 

Silvercorp, currently carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters and matched once, with the average earnings surprise being 16.5%. SVM has gained around 23.5% in the past year.



 

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