Eastman Chemical’s 2018 stock performance
So far in 2018, Eastman Chemical (EMN) has outperformed most of its peers and also the broader market. As of March 29, 2018, EMN has gained 14% since the beginning of 2018. Westlake Chemical’s (WLK) stock price has risen 4.3%, while LyondellBasell (LYB) and Olin (OLN) have fallen 4.2% and 14.6%, respectively, in the same period.
Eastman Chemical’s strong performance is due to better-than-expected 4Q17 earnings. EMN reported 4Q17 adjusted earnings per share of $1.62 and reported revenue of $2.4 billion as compared to $2.2 billion in 4Q16 earnings. The company projects that fiscal 2018 adjusted earnings per share will be in the 8% to 12% range. Other positives include Eastman Tritan’s continued new client growth and the addition of new products and technology. EMN has also increased the prices of several products, which could help to improve its revenue.
EMN’s stock price gains have led the stock to trade 8.5% above the 100-day moving average price of $97.35, indicating an upward trend in the stock. EMN’s 14-day relative strength index of 54 indicates that the stock is neither overbought nor oversold. An RSI of 30 and below suggests that the stock is oversold, while 70 and above tells us that the stock is overbought.
Investors can indirectly hold EMN by investing in the Materials Select Sector SPDR Fund (XLB), which has invested 2.5% of its portfolio in Eastman Chemical.