With a market cap of $10 billion, Eastman Chemical Company (EMN) operates as a specialty materials company in the United States, China, and internationally. Founded in 1920, the Kingsport, Tennessee-based company offers additives, specialty polymers, other raw materials that are integral to producing paints and coatings, and more.
Companies with a market capitalization between $2 billion and $10 billion are generally classified as 'mid-cap stocks,” and EMN perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the specialty chemicals industry.
However, the stock touched its 52-week high of $114.50 on Sep. 27 last year and is now trading 23.1% below that peak. It has fallen 4% over the past three months, underperforming the Materials Select Sector SPDR Fund’s (XLB) 1.2% surge during the same time frame.
EMN stock has dropped 21.6% over the past six months and 12.1% over the past 52 weeks, compared to XLB’s 11.3% dip in the past six months and 7.4% fall over the past year.
EMN has been trading below its 200-day moving average since February end and under its 50-day moving average since mid-March, reflecting its recent downturn.
EMN stock declined marginally following its Q4 earnings release on Jan. 30. The company reported a 2% increase in sales revenue, mainly caused by a 1% higher sales volume/mix and 1% higher selling prices. Additionally, the company’s EPS amounted to $1.87, surpassing the Wall Street estimates by 18.4%. The company expects its EPS to be $8 to $8.75 for fiscal 2025.
Its rival, The Sherwin-Williams Company (SHW), has also shown an 8.8% decline over the past six months. However, the stock surged marginally over the past 52 weeks, outperforming EMN.
Wall Street analysts are moderately bullish on EMN’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $113.94 suggests a potential upside of 29.3% from current price levels.
