Cabot has businesses in chemicals, performance materials, and specialty fluids. The Company manufactures and sells carbon black, fumed silica, plastics, inkjet colorants, tantalum, niobium, and germanium. Cabot's specialty fluids business produces and markets cesium formate as a drilling and completion fluid for use in oil and gas well operations.
The USD 35.55 support, currently tested, should allow Cabot to rally again.

From a fundamental viewpoint, Cabot Corp is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 1.09 times its revenues. Furthermore, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.

Cabot is oversold because is near to USD 35.6. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 43.7 resistance. The downside risk is limited because the USD 35.6 support has been tested several times.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Cabot in a good timing. Investors might placed a stop loss order at USD 34.5 in order to avoid important losses.