11 Undervalued Chemical Stocks to Buy Now

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5. Eastman Chemical Company (NYSE:EMN)

Forward P/E: 10.31

Number of Hedge Fund Holders: 37

Eastman Chemical Company (NYSE:EMN) is an American multinational chemical and specialty materials company that produces a broad range of advanced materials, chemicals, fibers, and additives and functional products for everyday items. Addressing the needs of customers in more than 100 countries, the company serves attractive end markets such as transportation, building and construction, health and wellness, and consumables. Eastman Chemical Company (NYSE:EMN) ranks among the best chemical stocks to invest in.

The company is focusing on driving growth and financial performance through circular economy initiatives. In Q4 2024, Eastman Chemical Company (NYSE:EMN) continued to operate the Kingsport methanolysis facility, setting it up to deliver strong earnings growth in 2025. The company is investing in growth initiatives and launched the world’s largest molecular recycling facility to advance its leadership position in the circular economy. During the quarter, Eastman Chemical Company (NYSE:EMN) also made progress in building its Renew sales funnel. Through these initiatives, the company expects substantial EBITDA growth and projects that it will generate over $2.1 billion of EBITDA and approximately $1.6 billion of cash from operations in a stable economic environment before the benefit of circular investments. Eastman Chemical Company (NYSE:EMN) expects to see an additional EBITDA of $500 million by 2029. This will include $350 million of EBITDA from methanolysis projects in Kingsport, Tennessee and Longview, Texas, as well as $150 to $200 million of EBITDA from its cellulosic biopolymer platform. In 2025, Eastman Chemical Company (NYSE:EMN) expects that the Kingsport methanolysis facility will generate an incremental $75 to $100 million of EBITDA contribution compared to 2024.

To achieve these targets from its circular initiatives, the company will continue to invest in organic growth. Eastman Chemical Company (NYSE:EMN) expects capital expenditures of around $800 million in 2025 and between $800 million and $1 billion in 2026 and 2027.

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