Why Huntsman (HUN) is Setting Up for a Big Move in March

A rectangle pattern has formed in the chart of Huntsman Corp. (HUN).  When the stock breaches this sideways trading range, a breakout or breakdown is expected…

Huntsman Corp. (HUN) is a US-based manufacturer of differentiated organic chemical products. The company’s products are used in adhesives, aerospace, automotive, construction products, among others.

The company is benefiting from its growing downstream specialty and formulation businesses. Acquisitions are also aiding growth. In addition, HUN is reducing debt, expanding its margins, and generating strong free cash flows.

The company had $1.6 billion in cash as of the most recent quarter, compared with only $593 million in short-term debt. HUN is also quite profitable with a net margin of 17.2%. Over the past year, both earnings and revenue are down, but earnings are expected to soar 96.6% in the current quarter. 

Its stock is fairly valued based on its trailing P/E of 25.16. The stock has shown mixed momentum over the short-term leading to a Momentum Grade of C in our POWR Ratings system.

Take a look at the 1-year chart of HUN below with added notations…

See chart and continue reading at STOCKNEWS.com