Lubrizol Corp. (LZ) is posting huge gains on the heels of higher estimates, but still trades in value territory to compliment its respectable 1.9% dividend.

Company Description

Lubrizol Corp. produces specialty chemicals and additives to various industries and consumers worldwide. The company was founded in 1928 and has a market cap of $4.84.

Shares of LZ have been on fire since bottoming out just above $23 in early march. Since then, this stock has consistently set new 52-week highs, recently topping off above $71. The big move has been accompanied by rising estimates.

Estimates Rising

The current-year estimate is up 24 cents in just the last 7 days and a whopping $1.97 in the last 3 months, currently standing at $6.20 per share.

Second-Quarter Results

Looking back a bit further, the company’s solid second-quarter results, reported in late July, gave shares an extra boost. Revenue was down from last year to $1.11 billion, but earnings were on target at $2.02 per share, in line with the Zacks Consensus Estimate.

Valuation

In spite of the massive run up in shares, this stock still has value, trading at 11.5X projected current-year earnings, a sharp discount to the overall market.

And The Dividend?

Not only are shares trending higher, but this stock also pays a respectable dividend of 1.90%, adding a nice source of income to compliment capital gains.

Zacks Investment Research

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