Analysis of Benzinga's Q4 Bearish Momentum Warning for Materials Stocks (EXP/EMN)

This analysis is based on Benzinga’s December 19, 2025, report titled “Top 2 Materials Stocks That May Plunge In Q4” [1], which warned of bearish momentum signals in the materials sector. Due to crawling limitations, the exact stock names were not retrievable, but Eagle Materials Inc. (NYSE: EXP) and Eastman Chemical Company (NYSE: EMN) are inferred as likely candidates based on their simultaneous analyst downgrades on the same date [0].
On December 19, EXP was downgraded from Buy to Hold by Truist Securities [0], closing at $217.55 (down 1.83% from the previous day) with trading volume of 1.78M shares—significantly above its 10-day average of ~545K shares [0]. EMN was downgraded from Overweight to Equal Weight by Wells Fargo [0], closing at $63.56 (up 1.05%) but with elevated volume of 2.61M shares, exceeding its 10-day average of ~1.87M shares [0]. Notably, the Basic Materials sector was up 0.35% on December 19 [0], indicating that the stock movements were company-specific rather than sector-wide.
Key metrics show EXP has underperformed YTD (-12.50%) and over three months (-5.73%), with a P/E ratio of 15.52x and a 70.8% Buy consensus rating [0]. EMN has experienced more significant YTD underperformance (-29.41%) but milder three-month decline (-2.10%), with a P/E ratio of 10.23x and a 57.1% Buy consensus rating [0].

1. The inference of EXP and EMN as the report’s target stocks relies on timeline and sector alignment, but the missing full article content creates uncertainty about the specific momentum indicators cited [1].
2. The report targets momentum-focused investors, meaning short-term trading decisions could be disproportionately influenced by the bearish signal, even as long-term analyst consensus remains mostly positive for both stocks [0][1].
3. EXP (construction materials) and EMN (specialty chemicals) operate in distinct sub-sectors, so their performance drivers (e.g., construction demand vs. specialty chemical market trends) and risk profiles may differ significantly [0].
4. Elevated trading volume on the event date suggests increased investor attention, which could amplify price volatility for both stocks in the remaining days of Q4 2025 [0].

• Short-term selling pressure
  : Analyst downgrades and the Benzinga report’s bearish momentum warning may prompt momentum traders to sell, driving short-term price declines [0][1].
• Sector sensitivity
  : The materials sector is vulnerable to economic growth slowdowns, rising interest rates, and commodity price fluctuations, which could negatively impact both EXP and EMN [0].
• Volatility amplification
  : High trading volume on December 19 indicates heightened market interest, which may increase price volatility in the near term [0].

• Long-term analyst support
  : Despite the downgrades, both stocks maintain a majority Buy consensus rating, signaling potential long-term upside [0].
• Valuation appeal
  : EMN’s low P/E ratio (10.23x) and EXP’s moderate P/E (15.52x) could attract value investors seeking undervalued materials sector opportunities [0].

• Benzinga published a Q4 bearish momentum warning for two materials stocks on December 19, 2025 [1].
• EXP and EMN are inferred as likely candidates due to concurrent analyst downgrades [0].
• On the event date, EXP declined 1.83% on high volume, while EMN rose 1.05% but with elevated volume [0].
• Both stocks have underperformed YTD, but EMN’s decline is more significant; long-term analyst consensus remains mostly bullish [0].
• Decision-makers should monitor the full Benzinga article content (if available), company announcements, sector trends, and further analyst actions to assess ongoing risk [0][1].