Cramer sees a “nice” alternative to purchase the dip in Eastman Chemical

CNBC’s Jim Cramer said Thursday he sees an opportunity for investors to buy Eastman Chemical shares at an attractive price.

“With the tough setback over the past few weeks, including today’s almost 4% drop, I think Eastman is going to be a lot more convincing,” said the Mad Money host.

Eastman Chemical shares closed at $ 116.97 on Thursday, down about 10% from their 52-week high of $ 130.47 on June 1.

However, Cramer said he was confident the stock had more upside from current levels, partly due to his outlook on inflation and Federal Reserve monetary policy. Cramer said he still believes a Fed rate hike is years away, which means it is an attractive environment for cyclical stocks like Eastman Chemical to do well.

“Obviously, if you are concerned about the Fed, this is not the stock for you,” warned Cramer.

Recent comments from the CEO of another chemical company, LyondellBasell, also highlight Cramer’s optimistic outlook for Tennessee-based Eastman Chemical, which makes a wide range of products, including aircraft hydraulic fluids and plastics.

In an interview with Mad Money on Wednesday, Bob Patel, CEO of LyondellBasell, Cramer said he expected the supply-and-demand picture to be unbalanced for a while and said the “business environment will get stronger for longer.” be”.

Cramer said remarks like Patel’s allow him to overlook Thursday’s rotation out of cyclical stocks over “misguided” rate hike concerns.

“I think you have a great chance to buy Eastman Chemical which has great workmanship and also gives you the best sustainability kicker out there [a plastics maker] I’ve seen, “said Cramer.

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