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 closed the day up 0.9%. By the end of trading, Eastman Chemical Company fell $0.71 (-1.0%) to $68.26 on average volume. Throughout the day, 2,208,451 shares of Eastman Chemical Company exchanged hands as compared to its average daily volume of 1,610,500 shares. The stock ranged in price between $66.79-$68.51 after having opened the day at $68.24 as compared to the previous trading day's close of $68.97. Other companies within the Chemicals industry that declined today were: Pure Bioscience ( PURE), down 5.7%, Flexible Solutions International ( FSI), down 3.8%, BioFuel Energy Corporation ( BIOF), down 2.6% and Cytec Industries ( CYT), down 1.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Eastman Chemical Company, a specialty 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 $11.3 billion and is part of the basic materials sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 1.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates Eastman Chemical Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Kronos Worldwide ( KRO), down 6.1%, Gevo ( GEVO), down 5.9%, Senomyx ( SNMX), down 5.7% and CVR Partners ( UAN), down 4.8% , were all gainers within the chemicals industry with Praxair ( PX) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.