Zacks Investment Research downgraded Axalta Coating Systems Ltd. AXTA to a Zacks Rank #5 (Strong Sell) on Apr 12. Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market over the next few quarters.Why the Downgrade?So far in 2016, Axalta Coating Systems took multiple initiatives to expand its businesses. The company announced commercial opening of an expanded resin production facility in Mexico while deciding to enhance powder coating capabilities and technology in Montbrison facility, France. However, the company’s financial performance for fourth-quarter 2015 played a spoil-sport for investors.In the quarter, Axalta Coating Systems’ earnings of 24 cents per share came in 7.7% below the Zacks Consensus Estimate of 26 cents and the year-ago tally of 25 cents. Revenue declined 7% as unfavorable foreign currency movement affected the top line by 11.5%.For 2016, Axalta Coating Systems expects headwinds from foreign currency movements, which would restrict revenue to flat to down slightly year over year. Disappointing quarterly results as well as prevalent risks have made investors cautious about the company’s prospects. Over the last 60 days, the Zacks Consensus Estimate for earnings has fallen 3.9% to $1.24 per share for 2016 and 4.6% to $1.46 per share for 2017. Also, the company has an Earnings ESP of -3.23% for 2016.Stocks to ConsiderThough Axalta Coating Systems with a current market capitalization of $7 billion is off investors’ radar, there are some chemical stocks with higher investment values. Better-ranked stocks include Daqo New Energy Corp. DQ, KMG Chemicals Inc. KMG and BioAmber Inc. BIOA. While Daqo New Energy and KMG Chemicals sport a Zacks Rank #1 (Strong Buy), BioAmber holds a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BIOAMBER INC (BIOA): Free Stock Analysis Report AXALTA COAT SYS (AXTA): Free Stock Analysis Report DAQO NEW ENERGY (DQ): Free Stock Analysis Report KMG CHEMICALS (KMG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research