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Here's Why Eastman Chemical (EMN) is a Strong Value Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Eastman Chemical (EMN)

Eastman Chemical Company, based in Kingsport, TN, manufactures and sells chemicals, plastics and fibers. The company has 16 manufacturing sites in the United States, Europe and Asia-Pacific, supplying products throughout the world.

EMN boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Shares of Eastman Chemical are trading at a forward earnings multiple of 12.6X, as well as a PEG Ratio of 1.1, a Price/Cash Flow ratio of 9X, and a Price/Sales ratio of 1.2X.

Many value investors pay close attention to a company's earnings as well. For EMN, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $7.71 per share for 2024. Per share EMN boasts an average earnings surprise of 9.9%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding EMN to their portfolios.

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Eastman Chemical Company (EMN) : Free Stock Analysis Report

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Zacks Investment Research