Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Eastman Chemical as such a stock due to the following factors:
- EMN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $127.6 million.
- EMN has traded 743,424 shares today.
- EMN is trading at 8.35 times the normal volume for the stock at this time of day.
- EMN is trading at a new high 5.03% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on EMN:
Eastman Chemical Company, a specialty chemical company, manufactures and sells materials, chemicals, and fibers in the United States and internationally. The stock currently has a dividend yield of 2.2%. EMN has a PE ratio of 16. Currently there are 9 analysts that rate Eastman Chemical a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Eastman Chemical has been 1.6 million shares per day over the past 30 days. Eastman Chemical has a market cap of $10.9 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.25 and a short float of 2.3% with 2.00 days to cover. Shares are down 4.9% year-to-date as of the close of trading on Monday.
rates Eastman Chemical as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 11.7%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 403.33% to $91.00 million when compared to the same quarter last year. In addition, EASTMAN CHEMICAL CO has also vastly surpassed the industry average cash flow growth rate of -94.32%.
- EASTMAN CHEMICAL CO's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, EASTMAN CHEMICAL CO reported lower earnings of $4.94 versus $7.45 in the prior year. This year, the market expects an improvement in earnings ($7.17 versus $4.94).
- The gross profit margin for EASTMAN CHEMICAL CO is currently lower than what is desirable, coming in at 33.07%. Regardless of EMN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.99% trails the industry average.
- You can view the full Eastman Chemical Ratings Report.