Back to top

Bull of the Day

We are reaffirming our Outperform recommendation on Eastman Chemical Co. (EMN). Second quarter adjusted earnings topped the Zacks Consensus Estimate while sales missed. However, the company continues to expect double-digit earnings growth in 2012.

We believe that Eastman Chemical is well placed to benefit in the second half from the synergies of the Solutia acquisition. The company's diversified chemical portfolio, along with its integrated and diverse downstream businesses, is driving its earnings. It also benefits from business restructuring, cost-cutting measures and increased capacity additions.

On a P/E basis, the stock is trading at a discount to the peer group. Our long-term Outperform recommendation indicates that it will perform above the broader market. Our price target of $65 is based on 12.5x our fiscal 2012 earnings estimate.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.79 +6.76%
STAR BULK C… SBLK 13.96 +3.18%
BANCO DO BR… BDORY 14.20 +1.79%
GREEN PLAIN… GPRE 44.54 +1.67%
WEATHERFORD… WFT 23.31 +1.64%