Bullish Case: LSB Industries is undervalued with secular growth tailwinds from green energy transition and benefits from lower North American energy costs. Gas price disparity gives competitive production edge. Recent balance sheet improvements and reduced competition suggest readiness for cyclical recovery.


Bearish Case: Recent earnings miss and reduced forecasts imply ongoing struggles. Analyst sentiment is bearish with lower price targets. Expected revenue decline in industry outperformance context signals potential continued underperformance.


Potential Outcomes:

1) Cyclical recovery strengthens financials: 25%.

2) Continued earnings miss drags shares: 35%.

3) Green energy tailwinds lift performance: 20%.

4) Industry outgrowth remains unmet: 20%.


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April 11, 2024


LSB Industries Forecast

LXU        LSB Industries
Price Forecast: NEUTRAL    Price Action: MEAN REVERTING (?)






Correlated Stock Forecasts

Assets that tend to move strongly with LXU



AEHR Forecast + Options Trading Strategies   [AEHR]  Aehr Test Systems (0.92)


EXTR Forecast + Options Trading Strategies   [EXTR]  Extreme Networks (0.9)


BIDU Forecast + Options Trading Strategies   [BIDU]  Baidu (0.89)


NYCB Forecast + Options Trading Strategies   [NYCB]  New York Community Bancorp (0.88)


RILY Forecast + Options Trading Strategies   [RILY]  B. Riley Financial (0.88)



Uncorrelated Stock Forecasts

Assets with little price relationship to LXU



DOCN Forecast + Options Trading Strategies   [DOCN]  DigitalOcean (0.0)


VWO Forecast + Options Trading Strategies   [VWO]  Vanguard Group, Inc. - Vanguard FTSE Emerging Markets (0.0)


KNX Forecast + Options Trading Strategies   [KNX]  Knight-Swift Transportation (-0.01)


IREN Forecast + Options Trading Strategies   [IREN]  IREN (-0.01)


BCS Forecast + Options Trading Strategies   [BCS]  Barclays (-0.01)



Anticorrelated Stock Forecasts

Assets that tend to move strongly against LXU



VZ Forecast + Options Trading Strategies   [VZ]  Verizon Communications (-0.8)


BYRN Forecast + Options Trading Strategies   [BYRN]  Byrna (-0.81)


TMUS Forecast + Options Trading Strategies   [TMUS]  T-Mobile US (-0.82)


MGNX Forecast + Options Trading Strategies   [MGNX]  Macrogenics (-0.83)


WING Forecast + Options Trading Strategies   [WING]  Wingstop (-0.85)





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