Eastman Chemical’s Stock Correction: Opportunity for Investors?



Eastman Chemical’s stock performance

Eastman Chemical (EMN) hit an all-time high of $109.30 in 2018. However, the stock has turned negative for investors in 2018. On a year-to-date basis, Eastman Chemical stock has declined 14.6%. The stock has underperformed the broader market S&P 500 (SPY), which has gained 2.6%. Eastman Chemical stock has also underperformed Celanese (CE), which has declined 6.1%. Eastman Chemical has outperformed LyondellBasell (LYB) and Westlake Chemical (WLK), which have declined 16.6% and 34.2%, respectively.

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After reaching the all-time high, Eastman Chemical stock went through a correction. The sell-off in the US market took a toll on the stock. Some of the challenges like increased raw material prices, unfavorable foreign currency, and weakness in the acetate tow business were major concerns. Positive business developments like the continued demand for Eastman Chemical’s Tritan resulted in several new orders. Introducing new products is expected to drive the company’s growth. Expanding copolyester and completing the new isobutyric acid manufacturing facility in Kingsport, Tennessee, could drive the company’s future growth. As a result, Eastman Chemical stock could recover some of the lost ground.

Moving average and RSI

The fall in Eastman Chemical’s stock price caused it to trade 14.4% below the 100-day moving average price of $92.36, which indicates an upward trend in the stock. Eastman Chemical’s 14-day relative strength index of 42 indicates that the stock isn’t overbought or oversold. An RSI of 70 and above indicates that the stock is overbought, while an RSI of 30 and below indicates that the stock is oversold.


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