Send me real-time posts from this site at my email

Eastman Chemical (EMN) Partners With LVMH to Develop Packaging

Eastman Chemical Company EMN inks a partnership with LVMH’s Perfumes and Cosmetics division to develop packaging through its molecular recycling technologies. Parfums Christian Dior, one of LVMH’s houses, will introduce Eastman Cristal Renew copolyester that has 30% certified recycled content and this packaging is expected to hit the market this summer. More technology adoption is expected in the upcoming months.

Eastman’s pioneering molecular recycling technologies use plastic waste instead of fossil-based feedstock to produce resins. These innovative technologies reduce the generation of new plastic by entirely diverting the existing plastic waste and also bring down greenhouse gas emissions as against traditional techniques. Its technologies give brands the scope to meet their target of recycled content while at the same time maintain the high aesthetics that premium customers of luxury products expect.

LVMH noted that its decision to transition away from plastics made from virgin fossil resources rides on the back of its recently launched program, LIFE 360. The company is optimistic that this collaboration will provide solutions that can be immediately put into action, thereby enabling it to meet its first deadline in 2023.

Eastman said that LVMH’s bold step toward addressing environmental concerns braces its leadership position among luxury brand houses. The company is enthusiastic to work with LVMH and offer help to reach a circular economy.

Shares of Eastman have grown 83.3% in a year compared with the industry’s rise of 54.7%. The estimated earnings growth rate for the company for the current year is pegged at 40.8%.

Image Source: Zacks Investment Research

In the last reported quarter, the company recorded earnings of $2.13 per share, rising from $2.03 in the year-ago quarter and beating the Zacks Consensus Estimate of $2.03. It raked in net sales of $2,409 million, gaining 8% year over year and beating the Zacks Consensus Estimate of $2,335.6 million.

The company said that it is seeing continued momentum in the second quarter as it is gaining from innovation, strong market recovery and lower operating costs from its operations transformation program. It expects adjusted earnings per share between $8.25 and $8.75 for 2021. It also anticipates free cash flow to reach $1.1 billion in the year.

Zacks Rank & Other Stocks to Consider

Currently, Eastman carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Orion Engineered Carbons S.A OEC, Tronox Holdings PLC (TROX) and Univar Solutions Inc. UNVR, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Orion has a projected earnings growth rate of 61.5% for the current year. The company’s shares have grown 87.6% in a year.

Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have seen a surge of 247.3% in a year.

Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have jumped 69.1% in a year.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eastman Chemical Company (EMN): Free Stock Analysis Report
Orion Engineered Carbons S.A (OEC): Free Stock Analysis Report
Tronox Holdings PLC (TROX): Free Stock Analysis Report
Univar Solutions Inc. (UNVR): Free Stock Analysis Report
To read this article on click here.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue