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Huntsman (HUN) Gains But Lags Market: What You Should Know

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Huntsman (HUN - Free Report) closed at $20.04 in the latest trading session, marking a +1.31% move from the prior day. This change lagged the S&P 500's 2.3% gain on the day. Meanwhile, the Dow gained 2.5%, and the Nasdaq, a tech-heavy index, added 2.95%.

Prior to today's trading, shares of the chemical company had lost 7.87% over the past month. This has lagged the Basic Materials sector's loss of 0.66% and the S&P 500's gain of 1.21% in that time.

Wall Street will be looking for positivity from HUN as it approaches its next earnings report date. This is expected to be February 22, 2019. The company is expected to report EPS of $0.61, down 19.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.24 billion, up 1.49% from the prior-year quarter.

HUN's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $9.32 billion. These results would represent year-over-year changes of +37.9% and -1.44%, respectively.

Investors should also note any recent changes to analyst estimates for HUN. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.33% lower within the past month. HUN is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that HUN has a Forward P/E ratio of 5.78 right now. For comparison, its industry has an average Forward P/E of 12.13, which means HUN is trading at a discount to the group.

Also, we should mention that HUN has a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HUN's industry had an average PEG ratio of 1.04 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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