Should I Buy ESI? ESI 2026 Analysis

Should You Buy Element Solutions Inc (ESI) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

29.100

1 Day change

-2.38%

52 Week Range

30.260

Analysis Updated At

2026/01/28

Buy now for a long-term position. The trend is technically bullish (strong moving-average stack and positive MACD), Wall Street price targets have been moving up toward ~$33, and hedge funds have been increasing buying meaningfully. While the stock is near a short-term resistance zone (~$29.96–$30.51) and options positioning is put-heavy (cautious/hedged sentiment), the overall setup still supports initiating a beginner-friendly long-term buy at current levels (~$29.89), ahead of the next earnings catalyst (2026-02-23).

Technical Analysis

Price/Trend: Bullish trend structure with SMA_5 > SMA_20 > SMA_200, indicating a sustained uptrend across short-, medium-, and long-term timeframes. Momentum: MACD histogram at 0.103 and expanding above zero supports continued upside momentum. RSI: RSI_6 at 68.83 is near the upper end of “neutral” (approaching overbought), implying upside may be choppier near-term but not a clear reversal signal by itself. Levels: Pivot 29.056. Immediate resistance at R1 29.956 (current price ~29.89 is just below), then R2 30.511. Supports at S1 28.156 and S2 27.601. Pattern/near-term expectation: Similar-pattern model suggests ~-1.58% over the next week and +1.87% over the next month—consistent with short-term consolidation but constructive medium-term drift higher. Intellectia Proprietary Trading Signals: **Intellectia Proprietary Trading Signals** - [AI Stock Picker](module://ai_stock_pick): No signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock recently.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment read: Open interest is heavily skewed to puts (put OI 5931 vs call OI 1251; OI put/call 4.74), which is typically a cautious/defensive positioning signal (investors hedging) rather than outright speculative bullishness. Activity/volatility: Today’s option volume is extremely light (2 contracts), so the put-heavy OI is more informative than today’s volume. Implied vol (~36.9) is slightly below historical vol (~37.9) with IV percentile 42 and IV rank 14—options pricing is not signaling extreme fear or euphoria. Takeaway: Options positioning looks hedged/cautious, but not panicked; it does not contradict a long-term buy, though it suggests near-term upside may be more incremental.

Technical Summary

Sell

Buy

Positive Catalysts

Analyst support and rising targets: Multiple firms recently raised price targets to ~$33 (BofA and Truist in Jan
while maintaining Buy ratings, reinforcing a positive institutional narrative.
AI/data center exposure: Analysts specifically cite exposure to AI and data center capital investment and increasing chip/circuit-board complexity as supportive demand drivers.
Hedge fund accumulation: Hedge funds are reportedly buying, with buying amount up ~275.89% quarter-over-quarter.
Upcoming earnings catalyst: QDEC 2025 earnings on 2026-02-23 (after hours). A solid print/guidance could be a positive re-rating event.

Neutral/Negative Catalysts

Short-term technical overhead: The stock is just below resistance (R1 ~29.96; R2 ~30.51), which can cause near-term stalling/pullbacks even in an uptrend.
Put-heavy options open interest: Elevated put/call OI (4.
reflects cautious positioning/hedging and can coincide with near-term uncertainty.
Macro commentary: Truist flagged a “low-growth” macro environment as a limiter for broad chemicals demand growth into 2026 (even while expecting relative strength for AI-exposed names).
No recent news momentum: No news in the last week—near-term moves may rely more on broader market tone and the upcoming earnings event.

Financial Performance

Latest reported quarter: 2025/Q3. - Revenue: $656.1M, +1.72% YoY (modest top-line growth). - Net income: $39.3M, -2.48% YoY. - EPS: $0.16, -5.88% YoY (profitability per share softened). - Gross margin: 42.22%, +1.81% YoY (margin improvement is the bright spot). Interpretation: The quarter shows steady revenue growth and improving gross margin, but bottom-line/EPS declined—suggesting costs, mix, or other below-the-line factors weighed on earnings. For a long-term investor, the margin improvement is constructive, but you’ll want confirmation of earnings leverage in the next report (2026-02-23).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Net positive. Price targets have generally moved higher again into Jan 2026, with Buy/Outperform stances maintained. - 2026-01-26 (BofA): PT raised to $33 from $31; Buy maintained; highlights asset-light model and AI/datacenter exposure; cites upside potential from Kuprion traction. - 2026-01-21 (Truist): PT raised to $33 from $30; Buy maintained; expects limited broad growth in 2026 but relative strength for AI/datacenter-exposed companies. - 2025-11-20 (Mizuho): PT lowered to $29 from $31; Outperform maintained; reduction tied to semiconductor index weakness. - 2025-11-05 (BMO): PT raised to $35 from $30; Outperform maintained; positive on acquisition. - 2025-10-30 (UBS): PT raised to $33 from $32; Buy maintained. Wall Street pros: Strong recurring Buy/Outperform ratings, multiple PT increases, and a clear narrative around AI/datacenter-driven electronics complexity. Wall Street cons: Sensitivity to semi-cycle sentiment (e.g., SOX weakness impacting targets) and macro “low-growth” backdrop. Influential/political trading: No recent congress trading data available; insider trading trend is reported as neutral (no significant insider activity).

5 Analyst Rating

Wall Street analysts forecast ESI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ESI is 33 USD with a low forecast of 29 USD and a high forecast of 35 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

0 Hold

0 Sell

Strong Buy

Current: 29.810

Low

Averages

High

Current: 29.810

Low

Averages

High

BofA

Matthew DeYoe

Buy

maintain

$31 -> $33

AI Analysis

2026-01-26

New

Reason

BofA

Matthew DeYoe

Price Target

$31 -> $33

AI Analysis

2026-01-26

New

maintain

Buy

Reason

BofA analyst Matthew DeYoe raised the firm's price target on Element Solutions to $33 from $31 and keeps a Buy rating on the shares. After having hosted Element Solutions CEO Ben Gliklich for investor meetings, the firm remains attracted to the companys asset light business model with exposure to AI and datacenter capital investment and increasing chip and circuit board complexity, the analyst tells investors, citing confidence in the growth algorithm and upside through Kuprion sales traction.

Truist

Buy

maintain

$30 -> $33

2026-01-21

Reason

Truist

Price Target

$30 -> $33

2026-01-21

maintain

Buy

Reason

Truist raised the firm's price target on Element Solutions to $33 from $30 and keeps a Buy rating on the shares. The firm adjusted targets in the chemicals group as part of its Q4 earnings preview. The analyst says demand growth for the group will be limited in 2026 given the "low-growth" macro environment. Truist expects relative strength to continue for the companies with exposure to AI and data centers.

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ESI Should I Buy

ESI Should I Buy

Should You Buy Element Solutions Inc (ESI) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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