Eastman Chemical (EMN) Drops 3.66% in Three Days, Hits 2025 Low

Eastman Chemical (EMN) shares fell 0.66% today, marking the third consecutive day of decline, with a total drop of 3.66% over the past three days. The share price hit its lowest level since April 2025, with an intraday decline of 1.20%.

The strategy of buying EMN shares after they reach a recent low and holding for one week resulted in a 8.58% return, significantly underperforming the benchmark return of 56.94%. The excess return was -48.36%, and the CAGR was 3.42%, indicating that the strategy barely kept pace with inflation. The strategy had a Sharpe ratio of 0.13, a maximum drawdown of -34.29%, and a volatility of 25.94%, suggesting that while the strategy aimed to capture short-term rebounds, it failed to do so, and the risk was considerable.

Eastman Chemical's stock has been impacted by recent spending cuts and tariff moderation, leading to a change in the stock rating from 'Sell' to 'Hold'. This shift reflects the market's cautious stance towards the company's near-term prospects. The downward trend in the stock price, coupled with negative signals from both short and long-term Moving Averages, suggests a bearish outlook. Increased trading volume on falling prices further indicates potential risks in the coming days. Analysts predict that the stock will continue to perform weakly due to its wide and falling trend.