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

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 higher today making it today's featured chemicals winner. The industry as a whole closed the day up 0.5%. By the end of trading, Eastman Chemical Company rose 91 cents (1.5%) to $59.94 on average volume. Throughout the day, 2.2 million shares of Eastman Chemical Company exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $58.02-$60.03 after having opened the day at $58.70 as compared to the previous trading day's close of $59.03. Other companies within the Chemicals industry that increased today were: Omnova Solutions ( OMN), up 7.6%, Ceres ( CERE), up 6.1%, GSE ( GSE), up 4.5%, and Solazyme ( SZYM), up 4.5%.
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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 $9.09 billion and is part of the basic materials sector. The company has a P/E ratio of 15.5, below the S&P 500 P/E ratio of 17.7. Shares are up 51.7% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Eastman Chemical Company a buy, no analysts rate it a sell, and six 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 revenue growth, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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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