Huntsman Corporation Dropped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Seems like everything is down today, but Huntsman (NYS: HUN) is down more than most -- 25% and counting. Yowza.
So what: Huntsman reported $0.47 per share in Q2 profit -- one penny short of Wall Street estimates.
Now what: But that's not the worst part. Sure, selling a stock down by 25% because it "missed by a penny" sounds pretty silly. But consider: Even after the sell-off, Huntsman still sells for 12 times earnings, but is only expected to grow those earnings at 7% per year over the next five years. I don't know about you, but that doesn't seem crazily cheap to me. At a valuation like this, I'm not so sure investors are wrong to be selling Huntsman.
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At the time this article was published Fool contributorRich Smithdoes not own (or short) shares of Huntsman Corporation. The Motley Fool has adisclosure policy. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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