Yahoo Finance Are Investors Undervaluing Eastman Chemical (EMN) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Eastman Chemical (EMN). EMN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.06, which compares to its industry's average of 12.86. EMN's Forward P/E has been as high as 11.55 and as low as 7.36, with a median of 10.05, all within the past year.
Another notable valuation metric for EMN is its P/B ratio of 1.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. EMN's current P/B looks attractive when compared to its industry's average P/B of 1.95. EMN's P/B has been as high as 2.42 and as low as 1.56, with a median of 1.98, over the past year.
These are just a handful of the figures considered in Eastman Chemical's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EMN is an impressive value stock right now.
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Eastman Chemical Company (EMN) : Free Stock Analysis Report
