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Huntsman (HUN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Huntsman (HUN - Free Report) closed at $35.51, marking a -1.28% move from the previous day. This change lagged the S&P 500's 0.72% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the chemical company had gained 1.07% over the past month. This has lagged the Basic Materials sector's gain of 7.81% and outpaced the S&P 500's loss of 6.24% in that time.

Huntsman will be looking to display strength as it nears its next earnings release. On that day, Huntsman is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 45.45%. Meanwhile, our latest consensus estimate is calling for revenue of $2.3 billion, up 25.36% from the prior-year quarter.

HUN's full-year Zacks Consensus Estimates are calling for earnings of $3.99 per share and revenue of $8.98 billion. These results would represent year-over-year changes of +12.71% and +6.21%, respectively.

Investors should also note any recent changes to analyst estimates for Huntsman. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.91% higher. Huntsman currently has a Zacks Rank of #2 (Buy).

Investors should also note Huntsman's current valuation metrics, including its Forward P/E ratio of 9.02. For comparison, its industry has an average Forward P/E of 10.94, which means Huntsman is trading at a discount to the group.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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