What Is Eastman Chemical Company's (NYSE:EMN) Share Price Doing?
Eastman Chemical Company (NYSE:EMN), which is in the chemicals business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$83.90 at one point, and dropping to the lows of US$69.55. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Eastman Chemical's current trading price of US$69.55 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Eastman Chemical’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Eastman Chemical
Is Eastman Chemical still cheap?
Great news for investors – Eastman Chemical is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $126.49, but it is currently trading at US$69.55 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Eastman Chemical’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Eastman Chemical look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Eastman Chemical’s earnings over the next few years are expected to increase by 46%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since EMN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on EMN for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EMN. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Eastman Chemical. You can find everything you need to know about Eastman Chemical in the latest infographic research report. If you are no longer interested in Eastman Chemical, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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