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Eastman (EMN), Patagonia Unite to Tackle Global Textile Waste

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Eastman Chemical Company (EMN - Free Report) established a partnership with Patagonia to address the textile waste crisis.

Eastman collaborated with the outdoor apparel company to recycle 8,000 pounds of pre- and post-consumer garment waste, which Eastman processed using its molecular recycling technology. This process entails breaking down Patagonia's unwanted clothing into molecular building blocks that Eastman can utilize to create new fabrics.

Textile waste is a key problem, and customers are increasingly looking for better, more sustainable solutions when their apparel reaches the end of its life, Patagonia noted.

Eastman has the technology to make the textile industry circular, and it understands that collaboration with innovative brands is required to make circular fashion a reality. The company is looking for more partnerships this year.

Shares of Eastman have gained 11.3% over the past year against the 4.4% decline of its industry.

Zacks Investment Research
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The company, in its fourth-quarter call, stated that it expects volume increase due to the absence of client inventory destocking in its end markets, with the notable exception of medical and agriculture, which will continue to destock in the first quarter of 2024.

EMN anticipates minor primary demand increases in several stable end industries, with discretionary end markets remaining steady. It expects to gain from revenues and earnings generated by its Kingsport methanolysis facility. Taking all of this into account, the company expects 2024 earnings per share (EPS) between $7.25 and $8.00, with cash from operations of around $1.4 billion.

Zacks Rank & Key Picks

Eastman currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space include Denison Mines Corp. (DNN - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Hawkins, Inc. (HWKN - Free Report) .

Denison Mines presently sports a Zacks Rank #1 (Strong Buy). DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared 75.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology currently flaunts a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 55.1% in the past year.

The Zacks Consensus Estimate for Hawkins’ current fiscal-year EPS is pegged at $3.61, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged roughly 78.7% in the past year.

 

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