Year to date, Chemtura Corporation (NYSE:CHMT)  stock has yielded positive results for investors.  So far this year the stock has jumped 3.56% as investors are hopeful that the trend can continue into the 2nd half of 2016.  Is now the right time to take profits or hold long term?  Investors will be paying particularly close attention to the upcoming earnings announcement as well as what analysts are anticipating over the next couple of quarters. 

Let’s look at some key indicators to assess this stock:

Earnings Per Share (EPS):

EPS is the amount of money each share would be worth if a company were to pay out all of its profits to the shareholders.  Earnings Per Share can be calculated by dividing the company’s profit total by the number of its shares.  For example, if a company’s profit is $400 million and there are 20 million shares, the EPS is $20.  EPS is a great way to tell how companies in the same industry compare with one another.  If a company shows consistently steady earnings growth, it will often outperform companies with more volatile earnings over a long period of time. Chemtura Corporation (NYSE:CHMT) shares have an EPS (trailing 12 months) of 0.22 .  Their EPS growth this past year was -76.50% and -8.80% for the past five years.  Experts on Wall Street predict Chemtura Corporation (NYSE:CHMT)’s stock to grow 16.44% next year and 19.90% for the next five.

Price to earnings (P/E) ratio:

P/E ratio is the relationship between a company’s earnings and its stock price.  It is calculated by dividing the current price per share of a company’s stock by its earnings per share.  For example, if a company’s stock sells for $100 per share and its earnings per share are $10, then it has a P/E of 10 ($100 divided by $10). Chemtura Corporation’s shares have a P/E of 131.35.  The P/E ratio can tell you if a stock’s price is too high or low compared to its earnings.  Some investors might consider a company that has a high P/E of being overpriced, but sometimes a company that has a high P/E might offer a high returns and improved P/E in the future. 

Price to earnings ratio to growth ratio (PEG):

PEG helps clarify the P/E ratio.  It is calculated by dividing the P/E ratio with the company’s projected earnings growth.  PEG can tell you if a stock might be a good value.  If the number is low, the less you will likely have to pay to get in on the company’s expected earnings growth in the future. Chemtura Corporation (NYSE:CHMT) has a PEG of 6.60.