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    Will Huntsman's Shift Into the Russell 2000 (HUN) Change Its Core Investment Narrative?

    Simply Wall St·07/08/2026 18:52:39
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    • On 27 June 2026, Huntsman Corporation (NYSE:HUN) was removed from several Russell large- and mid-cap indices and added to the Russell 2000 and associated value and dynamic benchmarks as part of Russell’s annual reconstitution.
    • This shift from large- and mid-cap to small-cap benchmarks could alter how index-tracking funds and benchmark-aware investors position Huntsman within their portfolios.
    • We’ll now examine how Huntsman’s move into the Russell 2000, and out of larger-cap Russell indices, affects its existing investment narrative.

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    Huntsman Investment Narrative Recap

    To own Huntsman today, you need to believe its shift toward higher value specialty chemicals can eventually offset current losses and end market uncertainty. The move from large and mid cap Russell indices into the Russell 2000 does not materially change the core near term story, which still hinges on whether a cyclical earnings recovery emerges before prolonged overcapacity, weak construction demand, and high European costs further entrench pressure on margins.

    The June 16 merger of equals announcement with Olin is the key backdrop for this index change, since it could reshape how Huntsman’s earnings profile and risk exposures are viewed once the combined OlinHuntsman entity is formed. While the deal remains subject to shareholder and regulatory approvals, it now sits at the center of the Huntsman thesis, potentially influencing how investors weigh its portfolio shift, cost actions, and exposure to structurally challenged European assets.

    Yet behind the index move and merger headlines, the risk that European overcapacity and high energy costs could force further asset rationalization is something investors should be aware of...

    Read the full narrative on Huntsman (it's free!)

    Huntsman’s narrative projects $6.6 billion revenue and $602.8 million earnings by 2029.

    Uncover how Huntsman's forecasts yield a $14.25 fair value, a 30% upside to its current price.

    Exploring Other Perspectives

    HUN 1-Year Stock Price Chart
    HUN 1-Year Stock Price Chart

    Compared with the baseline view, the most pessimistic analysts sound far more cautious, even before this index shift, assuming only 1.4 percent annual revenue growth and earnings of about US$62.5 million by 2029, so it is worth asking whether Huntsman’s move into small cap territory and the highlighted European overcapacity risk might push the story closer to their scenario or keep it nearer the more optimistic consensus.

    Explore 5 other fair value estimates on Huntsman - why the stock might be worth as much as 37% more than the current price!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.