Eastman Chemical Company (EMN): Today's Featured Chemicals Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Eastman Chemical Company ( EMN) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole was unchanged today. By the end of trading, Eastman Chemical Company fell 81 cents (-1.5%) to $53.65 on heavy volume. Throughout the day, 2.7 million shares of Eastman Chemical Company exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $52.93-$55.09 after having opened the day at $54.96 as compared to the previous trading day's close of $54.46. Other companies within the Chemicals industry that declined today were: Cereplast ( CERP), down 10%, Pure Bioscience ( PURE), down 5.2%, Senomyx ( SNMX), down 4.8%, and Verenium Corporation ( VRNM), down 4.7%.
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Eastman Chemical Company, a chemical company, engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally. Eastman Chemical Company has a market cap of $7.5 billion and is part of the basic materials sector. The company has a P/E ratio of 13.3, above the average chemicals industry P/E ratio of 12.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 38.9% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Eastman Chemical Company a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Eastman Chemical Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Gevo ( GEVO), up 5.6%, A Schulman ( SHLM), up 4.4%, Renewable Energy Group ( REGI), up 3.9%, and Rentech Nitrogen Partners ( RNF), up 3.5%, were all gainers within the chemicals industry with W. R. Grace ( GRA) being today's featured chemicals industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).

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