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 down 0.2%. By the end of trading, Eastman Chemical Company fell $1.76 (-2.6%) to $66.84 on average volume. Throughout the day, 2,166,733 shares of Eastman Chemical Company exchanged hands as compared to its average daily volume of 1,731,600 shares. The stock ranged in price between $66.76-$68.69 after having opened the day at $68.65 as compared to the previous trading day's close of $68.60. Other companies within the Chemicals industry that declined today were: Gevo ( GEVO), down 6.2%, Pacific Ethanol ( PEIX), down 5.7%, Synthesis Energy Sys ( SYMX), down 5.0% and Pure Bioscience ( PURE), down 4.7%.
  • 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 $10.7 billion and is part of the basic materials sector. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Shares are up 0.8% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Eastman Chemical Company a buy, no analysts rate it a sell, and 5 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 robust revenue growth, attractive valuation levels, solid stock price performance, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Ceres ( CERE), down 19.2%, Lightbridge ( LTBR), down 13.0%, Solazyme ( SZYM), down 10.1% and Terra Nitrogen Company L.P ( TNH), down 4.1% , were all gainers within the chemicals industry with E.I. du Pont de Nemours & Company ( DD) 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.
null

If you liked this article you might like

Market Recon: The Tax Reform Is Just Ordinary Negotiation on Steroids

Are Trump Stocks a Crowded Trade?

Avangrid Chart Shows Good Fundamentals Not Everything in Trading

Here's Why These 3 Stocks With Alluring Dividends Are Strong Buys

Bullish and Bearish Reversals for the Week