Huntsman (HUN) Stock Tumbles as the Market Rises: What You Need to Know


IIn the last trading session, Huntsman (HUN) closed at $39.43, marking a -0.98% move from the previous day. That change lagged the S&P 500’s 1.17% daily gain. Meanwhile, the Dow Jones gained 0.8% and the Nasdaq, a technology-heavy index, added 0.18%.

As of today, shares of the chemical company have lost 2.97% over the past month. Meanwhile, the basic materials sector gained 6.54%, while the S&P 500 gained 0.88%.

Investors are hoping for Huntsman’s strength as it approaches its next earnings release. The company is expected to post EPS of $0.98, up 48.48% from the prior year quarter. Meanwhile, our latest consensus estimate calls for revenue of $2.3 billion, up 25.36% from the prior year quarter.

For the full year, our Zacks consensus estimates call for earnings of $4 per share and revenue of $8.98 billion, which would represent variations of +12.99% and +6.21% , respectively, compared to the previous year.

Any recent changes in analyst estimates for Huntsman should also be noted by investors. These revisions help show the ever-changing nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business outlook.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. In the past 30 days, our consensus EPS projection has increased by 2.33%. Huntsman currently sports a Zacks rank of #3 (Hold).

Digging into the valuation, Huntsman currently has a Forward P/E ratio of 9.95. This represents a discount to the average PER of its sector of 12.45.

The chemical industry – diversified is part of the basic materials sector. This group has a Zacks Industry Rank of 157, which places it in the bottom 39% of all 250+ industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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