Headquartered in Kingsport, Tennessee, Eastman Chemical Company (EMN) is a global leader in specialty materials and chemicals with a market cap of $11.86 billion. Specializing in a wide range of innovative products that serve industries such as automotive, agriculture, healthcare, and consumer goods, Eastman Chemical plays a pivotal role in driving sustainability, enhancing product performance, and enabling technological advancements across various sectors.
Shares of EMN have underperformed the broader market over the past year. The stock has gained 22.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. Also, in 2024, EMN is up 12.2% compared to SPX’s 18.1% rise on a YTD basis.
Narrowing the focus, EMN has also outperformed compared to the iShares U.S. Basic Materials ETF (IYM). The exchange-traded fund has gained about 11% over the past year. Moreover, the ETF’s 4.6% gains on a YTD basis lagged behind the stock’s returns over the same time frame.
EMN reported Q2 results on Jul. 25, with revenue of $2.36 billion falling short of the Street forecasts of $2.37 billion. However, its adjusted EPS of $2.15 beat the consensus estimates of $1. Following the release of its results, the stock gained marginally.
For the current fiscal year, ending in December, analysts expect EMN’s EPS to grow 19.7% year over year to $7.66 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 16 analysts covering EMN stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
This configuration is less bullish than a month ago, with eight analysts suggesting a “Strong Buy.”
On Jul. 29, Jeffrey Zekauskas from JPMorgan Chase & Co. (JPM) maintained a “Buy” rating on Eastman Chemical, with a price target of $110, implying a potential upside of 9.1% from current levels.
The mean price target is $111.76, representing a premium of 10.9% compared to EMN’s current price levels. The Street-high price target of $128 suggests an upside potential of 27%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
