Jim Cramer sees 'terrific' opportunity to buy the dip in Eastman Chemical shares

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

“With the harsh pullback over the last couple weeks, including today’s nearly 4% slide, I think Eastman’s becoming a lot more compelling,” the “Mad Money” host said.

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

However, Cramer said he feels confident the stock has more upside from current levels due, in part, to his outlook on inflation and monetary policy from the Federal Reserve. Cramer said he still believes an interest rate hike from the Fed is years away, meaning it’s an attractive environment for cyclical stocks like Eastman Chemical to do well.

“Of course, if you’re worried about the Fed, this is not the stock for you,” Cramer cautioned.

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

In an interview Wednesday on “Mad Money,” LyondellBasell CEO Bob Patel told Cramer he expects the supply-and-demand picture to remain out of balance for a while, saying the “business environment is going to be stronger for longer.”

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

“I think you’re getting a terrific chance to buy some Eastman Chemical, which has great execution and also gives you the best sustainability kicker from [a plastics maker] that I have seen yet,” Cramer said.