Lubrizol Corp. (...

The Lubrizol Corporation (LZ) has seen its stock hitting 52-week highs in recent sessions, but it's still an attractive value stock as earnings have been rising. LZ has a forward P/E of just 11.33.

Company Description

Lubrizol manufactures specialty chemcials including lubricant additives for engine oils and fuel additives for gaoline and diesel fuel. It also makes ingredients and additives for personal care products and pharmaceuticals, plastics technology and performance coatings.

Raised 2009 Guidance on Sep 14

Lubrizol raised full-year guidance well-ahead of its Oct 29 third-quarter earnings report to the range of $6.10 to $6.40 from a prior range of $5.70 to $6.00 per share it issued on July 30.

Analysts are bullish and have been raising estimates as the earnings date approaches.

All 7 covering analysts raised 2009 estimates to $6.35 from $5.96 in the last 30 days. For the third quarter, the Zacks Consensus

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Lubrizol Corp. (LZ) recently raised its full-year earnings guidance to reflect improving volume trends, ongoing margin management and cost reduction initiatives. The company expects 2009 profit in the range of $5.87 to $6.17 per share, including restructuring and impairment charges of 23 cents per share.

The specialty chemicals company had earlier projected earnings of $5.47 to $5.77 per share. Excluding charges, its new adjusted earnings per share will be between $6.10 and $6.40, up from its prior view of $5.70 to $6.00 per share. The Zacks Consensus Estimate is pegged at $5.96.

Ratings Affirmed

Recently, Fitch Ratings affirmed its BBB rating on Lubrizol, reflecting a low to moderate credit risk. The rating outlook remains Stable driven by the company’s strong position in the additives market, steady free cash flow generation, reasonable credit metrics and cumulative debt reduction since its acquisition of Noveon International in June 2004.

The company's

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