Eastman Chemical's statutory earnings may have been distorted by unusual items, suggesting that its true underlying earnings power could be less than its statutory profit. There are also 2 warning signs for Eastman Chemical that investors should be aware of.
EPS growth and falling share price mismatch suggests a shift in market perception of the company. Recent sell-off could be a long-term growth opportunity, but investors should heed 2 warning signs for Eastman Chemical.
A decline in earnings per share and ongoing risk to future dividends make Eastman Chemical less appealing for dividend-focused investors despite efforts to increase the dividend payout ratio.
Despite Eastman Chemical's fair trading price, future buying opportunities may arise from the stock's volatility. The company's bright outlook, propelled by a predicted profit doubling, might lead to increased cash flow and share valuation. However, a thorough balance sheet analysis is recommended before investing.
Analyst Jeffrey Zekauskas from J.P. Morgan predicts Eastman Chemical's earnings to rebound in 2024. Poor performance in 2023 due to market challenges, but possible recovery driven by dividends and good free cash flow expected.
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JACKmusk : Good buy