Cabot Corporation (CBT) Shares Soar 1.32% on 7% EPS Surge

Cabot Corporation (CBT) shares surged 1.32% today, marking the second consecutive day of gains, with a total increase of 5.24% over the past two days. The stock price reached its highest level since April 2025, with an intraday gain of 1.68%.

The strategy of buying CBT shares after they reach a recent high and holding for one week yielded a 77.46% return, slightly underperforming the benchmark return of 90.13% over the same period. The strategy had a maximum drawdown of -36.35%, a Sharpe ratio of 0.42, and a volatility of 29.22%, indicating a challenging risk-return profile.

Cabot Corporation recently reported a 7% increase in adjusted earnings per share (EPS), demonstrating strong financial performance despite challenges in its Reinforcement Materials segment. This positive financial update has likely contributed to the recent upward trend in Cabot's stock price, as investors respond favorably to the company's earnings growth.

UBS Group has adjusted its price target for Cabot from $93.00 to $83.00, while maintaining a "neutral" rating. This adjustment reflects the bank's assessment of the company's current market conditions and potential future performance. The price target reduction may have influenced investor sentiment, leading to some volatility in Cabot's stock price. However, the "neutral" rating suggests that UBS Group still views Cabot as a stable investment option, which could help mitigate significant sell-offs.