Shares of Omnova Solutions (NYSE:OMN) were gapping up Wednesday morning with an open price 17.2% higher than Tuesday's closing price. The stock closed at $3.61 yesterday and opened today's trading at $4.23.
NEW YORK ( TheStreet) -- Shares of Omnova Solutions (NYSE: OMN) were gapping up Wednesday morning with an open price 17.2% higher than Tuesday's closing price. The stock closed at $3.61 Tuesday and opened today's trading at $4.23. The average volume for Omnova has been 352,000 shares per day over the past 30 days. Omnova has a market cap of $151.8 million and is part of the basic materials sector and chemicals industry. Shares are down 60% year to date as of the close of trading on Tuesday. OMNOVA Solutions Inc. provides emulsion polymers, specialty chemicals, and decorative and functional surfaces for commercial, industrial, and residential end uses primarily in North America, Asia, and Europe. The company operates in two segments, Performance Chemicals and Decorative Products. The company has a P/E ratio of 1.6, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. TheStreet Ratings rates Omnova as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Omnova Ratings Report. Get more investment ideas from our investment research center. Interested in other stocks that are gapping up? Get free SMS text alerts sent to you when the action happens by texting UP to 95370 or select from multiple alert options.
Jefferies analysts note that recent construction spending data indicates a cycle rotation away from construction-exposed names and toward industrial- and durable goods-levered firms could be playing out.