Eastman Chemical Company: Market Trends and Future Outlook
Eastman Chemical Company (EMN), with a market capitalization of $10 billion, is a key player in the specialty materials sector, operating not just in the United States but also in China and other international markets. Established in 1920 and based in Kingsport, Tennessee, EMN produces additives, specialty polymers, and other raw materials used in the manufacture of paints and coatings.
Classified as a mid-cap stock, EMN’s market cap solidifies its position within the specialty chemicals industry, showcasing its significant size and influence.
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Stock Performance Overview
Recently, EMN’s stock reached a 52-week high of $114.50 on September 27 last year but is currently trading 23.1% below that peak. Over the past three months, it has seen a decline of 4%, which lags behind the Materials Select Sector SPDR Fund (XLB), which gained 1.2% in the same period.
Recent Financial Trends
Over the last six months, EMN’s stock has decreased by 21.6%, and over the past year, it has fallen 12.1%. In contrast, XLB experienced smaller declines of 11.3% and 7.4% respectively in these time frames.
Additionally, EMN has been trading below its 200-day moving average since late February and under its 50-day moving average since mid-March, further reflecting its recent struggles.
Following its fourth-quarter earnings report on January 30, EMN’s stock declined modestly. The company announced a 2% increase in sales revenue, attributed to a 1% rise in both sales volume and prices. Moreover, EMN’s earnings per share (EPS) hit $1.87, outperforming Wall Street estimates by 18.4%. For the upcoming fiscal year 2025, the company projects an EPS target of $8 to $8.75.
Industry Position and Analyst Outlook
In comparison, EMN’s competitor, The Sherwin-Williams Company (SHW), has experienced an 8.8% decline in its stock over the last six months but managed to outperform EMN with a slight increase over the past 52 weeks.
Looking ahead, Wall Street analysts maintain a moderately positive outlook on EMN. The stock holds a consensus “Moderate Buy” rating from 16 analysts, with a mean price target of $113.94. This suggests a potential upside of 29.3% from its current trading levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
