Why LSB Industries (LXU) Stock Jumped This Afternoon

NEW YORK (TheStreet) -- Shares of LSB Industries Inc. (LUX) closed higher by 2.94% to $40.94 on Wednesday after the company announced it formed a strategic committee to help review the possibilities of separating business units, and placing some or all of its chemical business into an MLP structure, according to the company's SEC filing.

LSB Industries is a holding company and through its wholly owned subsidiaries owns chemical and climate control businesses.

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Separately, TheStreet Ratings team rates LSB INDUSTRIES INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate LSB INDUSTRIES INC (LXU) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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