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Huntsman Corporation (HUN), Eastman Chemical Company (EMN): Two Buys and 1 Sell In the Chemical Industry

The company is also planning to maximize its advantage of low-cost feedstock. Increasing profitability for farmers will drive the company’s agriculture business. whereas the increase in residential construction in the United States would up the demand for the company’s construction products. This is a turnaround time for the company and its future looks bright.

Eastman Chemical Company (NYSE:EMN)’s focused growth

Eastman Chemical Company (NYSE:EMN) is a relatively small company when compared to the likes of Huntsman Corporation (NYSE:HUN) and The Dow Chemical Company (NYSE:DOW). The company is a specialty chemical company and it sells plastics, chemicals and fibers in the United States and internationally. The company benefits from its focused approach because of which it has a portfolio with high organic growth.

The company fuels its growth by using world class technology platforms to develop products that address global market trends. Eastman Chemical Company (NYSE:EMN) is a market leader with two-thirds of its sales revenues coming from product lines in leading market positions. The company forecasts its EPS figures to grow by 20% this year, mainly due to the growth in its subsidiary business, Solutia. Due to its focused approach, the company expects to increase its EPS by approximately 50% through 2015.

Eastman Chemical Company (NYSE:EMN) is a solid investment opportunity.

The takeaway

Cyclical stocks are becoming more attractive as the U.S. economy recovers. The chemical industry of the United States is a huge chunk of the country’s GDP. The industry has high risk and, therefore, high returns. Investors can look for great returns by investing in Eastman Chemical Company (NYSE:EMN) and The Dow Chemical Company (NYSE:DOW), as these companies are poised for growth. Huntsman Corporation (NYSE:HUN) has been showing weak fundamentals, and until its latest acquisitions start to bear fruit, the company should be avoided.


Awais Iqbal has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
Awais is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 2 Buys and 1 Sell In the Chemical Industry originally appeared on Fool.com is written by Awais Iqbal.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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