Top 10 Chemical Stocks To Own Right Now

Top 10 Chemical Stocks To Own Right Now: Eastman Chemical Company (EMN)

Eastman Chemical Company, a chemical company, engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally. The company operates in four segments: Coatings, Adhesives, Specialty Polymers, and Inks (CASPI); Fibers; Performance Chemicals and Intermediates (PCI); and Specialty Plastics. The CASPI segment manufactures resins, specialty polymers, and solvents that are used in the production of paints and coatings, inks, adhesives, and other formulated products. The Fibers segment offers Estron acetate tow and Estrobond triacetin plasticizers used in cigarette filters; Estron natural and Chromspun solution-dyed acetate yarns for use in apparel, home furnishings, and industrial fabrics; and cellulose acetate flake and acetyl raw materials for acetate fiber producers. The PCI segment offers intermediates; performance chemicals; and complex organic molecules, such as diketene derivatives, specialty ketones, and specialty anhydrides for medical, pharmaceutical, fiber, and food and beverage ingredients, which are used in specialty market applications. This segment?s products are used in various markets and end uses, including agriculture, transportation, beverages, nutrition, pharmaceuticals, coatings, medical devices, toys, adhesives, household products, polymers, textiles, and consumer and industrial products, as well as used for health and wellness uses. The Specialty Plastics segment primarily offers engineering and specialty polymers, specialty film and sheet products, and packaging film and fiber products. This segment?s products include specialty copolyesters and cellulosic plastics, which are used in specialty packaging, in-store fixtures and displays, consumer and durable goods, medical goods, personal care and consumer packaging, photographic film, optical film, fibers/nonwovens, tape! s/labels, and LCD?s. The company was founded in 1920 and is headquartered in Kingsport, Tennessee.

Advisors' Opinion:

• [By Victor Selva] e exception. The firm has made an emphasis on its acetate tow production, mainly used for cigarettes. The company stands out for using coal as its input, in contrast with other competitors using petroleum and gas, both more expensive for production. This mark up has allowed Eastman to transfer some of its increasing costs onto prices,  without compromising its sales revenue.

  In addition to this, the acquisition of Solutia Inc. (former global leader in performance materials) completed on July 2, 2012, broadened Eastman's specialty chemicals output by adding automotive and solar end products to its portfolio.

  Although Eastman is a highly diversified company, it has proven to be severely affected by negative cycles of the economy. Even though this feature is not appealing whatsoever to investments, it certainly has caused it to become a cheap alternative. And, a quite promising one, since the economic recovery boosted its revenue, as a result of Eastman's focus on cost-advantage production methods.

  Other specialty chemical competitors, such as Ashland Incorporated (ASH) didn't show such a promising comeback, and the drop in revenue during 2012 was anticipated by investor Jean-Marie Eveillard (Trades, Portfolio), who sold out his 3.9 million share position by the third quarter of that year.

  Another industry giant, Huntsman Corporation (HUN) did show more promising results, and less volatile revenues during these last years. This, of course, has led to a high price to earnings ratio discouraging investors as we see later.

  Geographically Diversified

  On 2012, almost 50% of Eastman sales were generated in North America, while more than 25% were in Asia and 20% in Europe, Middle East and Africa. This diversification is to be taken into account since it guarantees long-term r! evenue, e! ven if cigarette consumption decreases in some specific region (for instance, American sales declined  in recent years),

• [By Michael A. Robinson]

  Today, Eastman Chemical Company (NYSE: EMN) ranks as an industry leader with a $12 billion market cap and whose stock is up 350% over the past five years, not counting the 1.5% dividend.

• [By Lauren Pollock]

  Eastman Chemical Co.'s(EMN) third-quarter earnings surged as the diversified chemical and materials producer reported sales growth as well as fewer charges related to its acquisition of Solutia Inc. last year. But it lowered its earnings estimate for the year on expectations it will continue to face challenges in its adhesives and plasticizers business, as well as higher raw-materials and energy costs. Shares dropped.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-10-chemical-stocks-to-own-right-now.html