Markets
EMN

Eastman Chemical Hits New 52-Week High on Bright Prospects

Shares of chemical maker, Eastman ChemicalEMN touched a fresh 52-week high of $86.79 on Aug 31, before pulling back to eventually close the day at $86.20.

Eastman Chemical has a market cap of roughly $12.5 billion and average volume of shares traded in the last three months is around 1,035.4K. The company has an expected long-term earnings per share growth of around 7.9%.

Eastman Chemical has outperformed the industry over a year. The company's shares have moved up 23.3% over this period, compared with roughly 16.7% gain recorded by the industry.

Driving Factors

Eastman Chemical saw higher profits in the second-quarter 2017, aided by its cost management actions, disciplined capital allocation and growth of high-margin products.

The company expects to drive growth on the back of innovation and high margin products amid an uncertain global business environment. Eastman Chemical believes that disciplined capital allocation and aggressive cost management policies should contribute to earnings growth and help to offset challenges faced by the company in Fibers and ethylene pricing.

Factoring in strong first-half results, the company now expects adjusted earnings per share for 2017 to grow 10-12% year over year, up from its earlier view of 8-12%.

Eastman Chemical remains focused on cost-cutting and productivity actions. The company is aims to achieve $100 million of cost savings in 2017.

The company remains committed to reduce debt and boost shareholder returns. Eastman Chemical returned around $325 million to shareholders during first-half 2017. It expects to deliver strong earnings growth and generate solid free cash flow (of around $1 billion) in 2017.

Eastman Chemical is also gaining from synergies of acquisitions, especially Taminco Corporation. The Taminco acquisition has provided attractive cost and revenue synergy opportunities.

Eastman Chemical Company Price and Consensus

Eastman Chemical Company Price and Consensus | Eastman Chemical Company Quote

Eastman Chemical currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the chemical space are The Chemours Company CC , Kronos Worldwide KRO and Akzo Nobel N.V. AKZOY . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Chemours has an expected long-term earnings growth of 15.5%.

Kronos Worldwide has an expected long-term earnings growth of 5%.

Akzo Nobel has an expected long-term earnings growth of 11.1%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Eastman Chemical Company (EMN): Free Stock Analysis Report

Kronos Worldwide Inc (KRO): Free Stock Analysis Report

Chemours Company (The) (CC): Free Stock Analysis Report

Akzo Nobel NV (AKZOY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

EMN KRO AKZOY CC

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More