9 Undervalued Chemical Stocks to Buy According to Hedge Funds

4. Eastman Chemical Company (NYSE:EMN)

Number of Hedge Fund Holders: 40

Forward PE Ratio: 13.75

Eastman Chemical Company (NYSE:EMN) is one of the best chemical stocks. 

TheFly reported today, on February 18, that Evercore ISI raised its price target on EMN by $5. Similarly, earlier on February 4, RBC Capital increased its price target on EMN from $70 to $79 and maintained a Sector Perform rating. The update followed the company’s Q4 results, with investors showing cautious optimism that commodity prices may have bottomed. A complete recovery would take longer than expected, though, as RBC noted that a significant amount of EMN’s product line is intermediate in nature. This implies that short-term growth can be modest even in a positive market climate.

Additionally, Eastman Chemical Company (NYSE:EMN) announced on January 29 its financial results for the fourth quarter and the full year 2025. Their achievements show prudent management and robust cash flow in a difficult economic climate. The report highlights that the company’s operational activities generated approximately $1 billion, which shows its capacity to sustain financial stability despite economic challenges.

The report also highlights that the company produced more than 2.5 times as much recycled material and generated more than $60 million in income at the Kingsport methanolysis plant. Additionally, EMN also exceeded its cost reduction goals by achieving savings of almost $100 million. The business also kept up its shareholder return program, increasing its dividend for the sixteenth year in a row and giving back over $500 million in dividends and share repurchases.

Eastman Chemical Company (NYSE:EMN) is a global specialty chemical company providing innovative, sustainable materials for industries like packaging, automotive, and manufacturing.