Methanex Stock Soars 48% YTD: What's Powering the Rally?

Methanex Corporation MEOH shares have soared 47.7% year to date. The company has also outperformed the Zacks Chemical - Diversified industry’s 22.8% growth over the same time frame.The rally is driven by an improvement in methanol market fundamentals and growing expectations for stronger profitability. The company is expected to benefit from higher methanol prices as significant supply disruptions in the Middle East have tightened global methanol markets and pushed prices sharply higher. Image Source: Zacks Investment ResearchLet’s take a look at the factors that are driving MEOH stock.What’s Aiding MEOH Stock?Methanex is expected to enhance its asset portfolio and future cash generation, deliver long-term value to shareholders and reduce the carbon dioxide intensity of its asset portfolio. Methanex produced 2,391,000 tons of methanol in the first quarter, up from 1,619,000 tons a year ago. With full-year production of the G3 plant, an incremental supply is expected. In the first quarter, production from Geismar increased more than 50% year over year, supporting higher sales for the quarter. Methanex's Chile operations improved in the first quarter as gas supply normalized following a pipeline outage in late 2025, supporting production of 398,000 tons. While gas availability from Chile and Argentina remains supportive, the company expects to idle one Chile plant during part of the second quarter due to seasonal winter gas constraints. The OCI acquisition, completed in June 2025, expanded Methanex’s presence in Texas with two world-scale methanol facilities benefiting from low-cost natural gas feedstock. The acquired assets performed strongly in the first quarter, producing 195,000 tons at Beaumont and 203,000 tons from the company’s share of Natgasoline. Middle East supply disruptions, which have significantly reduced exports from a region that normally supplies around 20 million tons of methanol annually, have tightened global markets and driven methanol prices sharply higher.  MEOH's average realized price was $351 per ton in the first quarter of 2026. Management expects the average realized price of $500-$525 per ton in April and May, supporting expectations for significantly stronger second-quarter earnings and adjusted EBITDA. The company is well-positioned to benefit from higher prices, supported by its diversified global production network and owned shipping fleet. Methanex ended the first quarter with nearly $380 million in cash and repaid $60 million of debt. The company expects to retire the remaining $290 million term loan in the second quarter, further strengthening its balance sheet while maintaining flexibility for potential share repurchases. MEOH’s Zacks Rank & Other Key PicksMEOH currently carries a Zacks Rank #1 (Strong Buy).Other top-ranked stocks in the Basic Materials space include Nexa Resources S.A. NEXA, DOW Inc. DOW and Avino Silver & Gold Mines Ltd. ASM.At present, NEXA and DOW sport a Zacks Rank #1, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for NEXA’s current fiscal-year earnings is pinned at $2.6 per share, indicating a 214.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 59.9%. Its shares have popped around 36.8% year to date. The Zacks Consensus Estimate for DOW’s current-year earnings is pegged at $2.54 per share, indicating a year-over-year rise of 370.2%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once. DOW shares have gained 46.4% year to date. The Zacks Consensus Estimate for ASM’s current-year earnings stands at 39 cents per share, reflecting a 34.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in all of the trailing four quarters, with the average earnings surprise of 125%. ASM’s shares have plunged 11.7% year to date. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks