Returns Breakdown
0.0525
Return On Tangible Assets
0.0394
Return On Assets
| Return On Tangible Assets | 0.0525 | |
| Return On Capital Employed | 0.12 | |
| Return On Assets | 0.0394 | |
| Return On Equity | 0.12 |
Will holding Eastman (USA Stocks:EMN) be justified in December 2025?
 | By Gabriel Shpitalnik | Macroaxis Story |
Eastman Chemical (NYSE: EMN) shows some promising signs with an expected EPS of around 6.70 next year, suggesting potential growth if the industry remains stable. However, its beta of 1.298 indicates higher volatility, and the current quote of 59.52 is close to its low of 58.7, hinting at possible short-term downside. While the Wall Street target price sits at approximately 74.59, investors should weigh the elevated risk, especially with a short ratio of 2.79, before considering a long-term hold through December 2025.
Primary Takeaways
Eastman Chemical sports a beta of 3.178, indicating it tends to move more sharply than the overall market. When markets rise, Eastman is likely to outperform, but during downturns, it could lag behind. This beta figure gives investors a sense of how much Eastman’s stock price swings relative to the broader market, highlighting its volatility. A high beta like this suggests greater risk, meaning the stock can experience significant ups and downs. If Eastman’s movements stay close to the market, it’s less risky and won’t dramatically boost or drag down a diversified portfolio. However, with such a high beta, investors should be prepared for more pronounced price swings, which could lead to bigger gains or losses depending on market conditions.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
A bird in the hand is worth two in the bush, and when it comes to Eastman Chemical (NYSE: EMN), the current outlook suggests holding onto what you have rather than rushing to buy more. The stock trades around $64, just above its 50-day moving average but well below its 200-day line at roughly $78, indicating some recent softness. Analysts give it a strong buy rating with a target price near $75, but the valuation hints at modest upside potential, with a possible increase to about $61.27. The company’s earnings are expected to grow slightly next quarter, with an EPS estimate of about $1.91, yet its PE ratio remains attractive at around 8.37, reflecting a reasonable valuation in the chemicals sector. Given the industry’s diversified nature and a beta of 1.3, EMN could be a steady hold through December 2025, especially if the broader market remains stable. However, with a PEG ratio over 3 and a payout ratio of roughly 62%, investors should stay cautious about future earnings volatility. Overall, EMN looks like a decent long-term hold, but significant upside may be limited unless the company surpasses expectations or the sector gains momentum. Currently, Eastman Chemical's price-to-book ratio remains steady compared to the past year. As of November 3, 2025, its free cash flow per share is projected to rise to approximately $6.19, even as the market cap is expected to decline by around $3 billion. This brief overview highlights Eastman Chemical as a potential addition to your investment lineup. We’ll also share insights into its future trajectory, helping you gauge whether it fits your portfolio strategy.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Eastman Chemical. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Eastman Chemical
How important is Eastman Chemical's Liquidity
Eastman Chemical financial leverage refers to using borrowed capital as a funding source to finance Eastman Chemical ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Eastman Chemical financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Eastman Chemical's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Eastman Chemical's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Eastman Chemical's total debt and its cash.
Eastman Chemical Gross Profit
Eastman Chemical Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Eastman Chemical previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Eastman Chemical Gross Profit growth over the last 10 years. Please check Eastman Chemical's gross profit and other fundamental indicators for more details.
Breaking it down
The small decline in market price for the last few months could raise concerns from investors as the firm is trading at a share price of 59.52 on very low momentum in volume. The company directors and management did not add much value to Eastman Chemical investors in October. However, diversifying your holdings with Eastman Chemical or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.06. The current volatility is consistent with the ongoing market swings in October 2025 as well as with Eastman Chemical unsystematic, company-specific events.
Warren Buffett once said, "Price is what you pay, value is what you get," reminding investors to look beyond short-term fluctuations. Eastman Chemical (NYSE: EMN) currently trades around $59.37, well below its 52-week high of $103.22, suggesting potential for upside if the company can sustain its growth. With a modest P/E ratio of 8.37 and a target price of approximately $74.59, there’s a potential upside of nearly 4%, indicating a possible buy-and-hold opportunity through December 2025. The company’s solid cash flow from operations of $1.29 billion and a healthy current ratio of 1.28 support its financial stability, despite a low operating margin of 0.12%. Given its diversified chemicals industry position and a 92.38% institutional ownership, EMN could be worth considering for investors seeking exposure to the specialty chemicals sector with moderate risk..
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Eastman Chemical. Please refer to our Terms of Use for any information regarding our disclosure principles.