Eastman Chemical Firm’s EMN sha
Eastman Chemical Firm’s EMN shares have popped 23.9% over the previous six months. The chemical maker has additionally outperformed its business’s rise of 20.3% over the identical timeframe. Furthermore, it has topped the S&P 500’s 15.4% rise over the identical interval.
Let’s have a look into the elements which might be driving this Zacks Rank #2 (Purchase) inventory.
What’s Stepping into EMN’s Favor?
Strong first-quarter earnings efficiency and upbeat prospects have contributed to the rally in Eastman Chemical’s shares. Its adjusted earnings of $2.13 per share for the primary quarter topped the Zacks Consensus Estimate of $2.03. Revenues of $2,409 million additionally beat the Zacks Consensus Estimate of $2,335.6 million. The corporate gained from its innovation-driven progress mannequin, operational execution and cost-management actions within the quarter.
Eastman Chemical, on its first-quarter name, mentioned that it’s seeing continued momentum within the second quarter because it features from innovation, sturdy market restoration and decrease working prices from its operations transformation program. It expects adjusted earnings per share of between $8.25 and $8.75 for 2021.
Earnings estimates for Eastman Chemical have additionally been going up over the previous two months. The Zacks Consensus Estimate for 2021 has elevated round 10% whereas the identical for second-quarter 2022 has gone up 17.6%. The favorable estimate revisions instill investor confidence within the inventory.
Eastman Chemical is seeing greater demand throughout constructing & building, transportation and client durables markets. Continued energy in these markets is anticipated to drive its gross sales volumes in 2021. The corporate additionally stays targeted on rising new enterprise revenues from innovation.
Furthermore, the corporate is taking an aggressive strategy to value administration within the wake of the pandemic. These initiatives embody discount of discretionary spending. The corporate decreased prices by roughly $150 million in 2020. Additionally it is on monitor with its cost-cutting actions in 2021, that are anticipated to contribute to its earnings per share. The corporate expects to profit from decrease working prices from its operational transformation program within the second quarter of 2021.
Eastman Chemical additionally stays dedicated to sustaining a disciplined strategy to capital allocation, with an emphasis on financing its dividend and debt discount. The corporate returned $418 million to shareholders via share repurchases and dividends throughout 2020. The corporate additionally returned $134 million to its shareholders via dividends and share repurchases throughout the first quarter. It expects to buyback shares price roughly $350 million in 2021. Eastman Chemical additionally anticipates free money circulation to strategy $1.1 billion for 2021.
Eastman Chemical Firm Value and Consensus
Eastman Chemical Firm price-consensus-chart | Eastman Chemical Firm Quote
Shares to Think about
Different top-ranked shares price contemplating within the primary supplies area embody Nucor Company NUE, Cabot Company CBT and Impala Platinum Holdings Restricted IMPUY.
Nucor has a projected earnings progress charge of 229.3% for the present 12 months. The corporate’s shares have rallied round 132% in a 12 months. It at present sports activities a Zacks Rank #1 (Robust Purchase). You may see the whole listing of right now’s Zacks #1 Rank shares right here.
Cabot has an anticipated earnings progress charge of round 126% for the present fiscal. The corporate’s shares have surged 64% up to now 12 months. It at present sports activities a Zacks Rank #1.
Impala Platinum has an anticipated earnings progress charge of 225.2% for the present fiscal. The corporate’s shares have surged round 165% up to now 12 months. It at present carries a Zacks Rank #2.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.