KMG Chemicals: The Story Is Playing Out
*KMG shares are outperforming the broader market by a wide margin, and I believe that the outperformance will continue through 2018.
*The company reported Q1 2018 results that blew away analyst estimates.
*KMG is a long-term buy at today's price.
On December 12, 2017, KMG Chemicals ($KMG) stock finished the trading day up 14% after the company reported strong quarterly results to start its new fiscal year. This one-day jump contributed to the already impressive YTD stock performance for KMG shares (shares are up over 60%), as the stock is now outperforming the broader market by almost 50 percentage points.
As I described in early September 2017, KMG is an unknown speciality chemicals company that is "worth a look" (the stock is up 35% since that article was posted). In my opinion, KMG's Q1 2018 results show that the company's long-term story is still intact and that there is potentially a lot of room for shares to run.
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