Eastman Chemical launches new insoluble sulfur
On February 16, 2018, Eastman Chemical (EMN) announced the launch of Eastman Cure Pro, its next generation of insoluble sulfur. This new sulfur is a vulcanizing agent that has high thermal stability, superior dispersion, and enhanced flow. Cure Pro is expected to help tire manufacturers improve productivity and reduce costs.
Lucrèce Foufopoulos, Eastman’s vice president of Tire Additives, said, “Crystex Cure Pro will truly change the industry’s perception of what a vulcanizing agent can do. Cure Pro offers many processing advantages that lead to lower operating costs for tire manufacturers.
“Eastman developed this technology to help tire manufacturers succeed in an increasingly competitive landscape.”
Stock price movements
Eastman Chemical (EMN) gained 5.6% and closed at $100.13 for the week ended February 16, 2018. The gains helped the stock trade above its 100-day moving average price of $93.25, indicating an upward trend in the stock.
On a year-to-date basis (or YTD), EMN has gained 8.1%. Among EMN’s peers, Dow DuPont (DWDP) has gained 1.0% YTD, Westlake Chemical (WLK) has fallen 1.5% YTD, and LyondellBasell (LYB) has declined 1.5% YTD.
Analysts project Eastman’s target price to be $108.00, which is ~8.0% over its February 16, 2018, closing price. EMN’s 14-day relative strength index (or RSI) of 58 indicates that the stock is neither overbought nor oversold.
Investors looking for indirect exposure to EMN can consider the First Trust Materials AlphaDEX ETF (FXZ), which invested 3.6% in Eastman Chemical on February 16, 2018. The fund gained 5.4% for the week.