With a market cap of $8.7 billion, Eastman Chemical Company (EMN) is a specialty materials manufacturer serving markets in the United States, China, and globally. Founded in 1920 and headquartered in Kingsport, Tennessee, the company provides essential additives, specialty polymers, and raw materials used across various industries, including paints and coatings.
Companies with a market capitalization between $2 billion and $10 billion are generally classified as 'mid-cap stocks,” and EMN perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the specialty chemicals industry. The company benefits from deep customer relationships across industries like automotive, construction, and consumer goods, and its integration across the value chain enhances cost efficiency and supply reliability. Additionally, Eastman's focus on sustainable solutions and circular economy initiatives, such as molecular recycling, positions it well amid rising demand for environmentally responsible materials.
Despite the notable strengths, the stock touched its 52-week high of $114.50 on Sep. 27 last year and is now trading 33.2% below that peak. It has fallen 15.1% over the past three months, underperforming the Materials Select Sector SPDR Fund’s (XLB) 1.3% surge during the same time frame.
EMN stock has dropped 16.3% on a YTD basis and 24% over the past 52 weeks, compared to XLB’s 4.2% rise in 2025 and 2.4% fall over the past year.
Indicating a bearish trend, EMN has been trading below its 200-day moving average since February-end and under its 50-day moving average since mid-March.
On May 30, Eastman Chemical shares dropped over 3% after the Trump administration rescinded a $375 million federal grant, which had been awarded in March 2024 to help fund its Texas molecular recycling plant, part of a broader $3.7 billion DOE rollback on clean-energy projects.
Its key rival, The Sherwin-Williams Company (SHW), has shown a 1.7% rise on a YTD basis and has returned 15% over the past 52 weeks, outperforming EMN.
Wall Street analysts are moderately bullish on EMN’s prospects. The stock has a consensus “Moderate Buy” rating from the 15 analysts covering it, and the mean price target of $196.81 suggests a potential upside of 26.6% from current price levels.
