Every stock market is volatile, and that’s especially the case in volatile sectors like chemicals. This article will go through the four best chemicals stocks to buy right now. Whether bullish or bearish in the chemicals space, there are always opportunities to invest in stocks of companies operating in this sector. We believe that with careful research and analysis, it is possible to identify stocks that will outperform the market. These four chemicals stocks are among our favorites today and offer significant potential for growth as we look forward to 2020 and beyond.
The Mosaic Company (MOS)
The Mosaic Company, a global fertilizer producer, is one of the best chemical stocks to buy. As demand for fertilizer, a critical component of modern agricultural production, continues to grow, Mosaic is well-positioned to benefit. The company’s revenue is derived from the production and sale of phosphate-based fertilizer, potash-based fertilizer, and salt. Mosaic’s fertilizer-producing facilities are located in Florida, Iowa, and Saskatchewan, Canada. The company also has operations in Louisiana and New Mexico. Mosaic’s diversified business model and geographic footprint give it a significant advantage over its peers. Over the last ten years, Mosaic’s stock has returned an annualized 12.9% and outperformed the S&P 500’s average return of 9.4%. We expect Mosaic’s robust growth to continue in the years to come.
Olin Corporation (OLN)
Olin Corporation, a manufacturer and supplier of chemicals, is one of the best chemicals stocks to buy. The company operates in two segments: Chemicals and Real Estate. Olin’s Chemicals segment produces titanium dioxide and specialty chemicals. The Real Estate segment develops, owns, and operates industrial and logistics properties. Olin’s stock has performed well over the last ten years, and we expect it to continue in the coming years. The company’s robust earnings growth and attractive valuation make it an attractive investment opportunity. Over the last ten years, Olin’s stock has returned an annualized 12.9% and outperformed the S&P 500’s average return of 9.4%. According to our forecasts, Olin’s stock has a significant upside from its current price.
RPM International (RPM)
RPM International, a leading producer and marketer of specialty chemicals, is one of the best chemicals stocks to buy. The company’s specialty chemicals segment produces acrylics, epoxy, polyurethane, and specialty materials used in coatings, construction, electronics, and other industrial applications. Over the last ten years, RPM’s stock has generated an annualized return of 9.2% and outperformed the S&P 500’s average return of 9.4%. We expect RPM to keep growing at a rapid pace and continue to outperform the market. In addition, the company’s substantial Balin addition, thee sheet, wide moat, and consistent track record of dividend growth make it an attractive investment opportunity.
Westlake Chemical (WLK)
Westlake Chemical, a manufacturer of basic chemicals, is one of the best chemicals stocks to buy. The company operates in two segments: Ethylene and Other Products. Ethylene, a primary chemical used in the production of downstream products such as polyethylene and polyvinyl chloride, is Westlake’s core business. The company’s stock has generated an annualized return of 10.4% over the last ten years and outperformed the S&P 500’s average return of 9.4%. We expect the company’s growth trajectory to continue in the years to come as well. Westlake’s substantial earning addition, growth, robust cash flow, and attractive valuation make it an attractive investment opportunity.
Investing in the chemicals sector can be risky given the cyclical nature of this industry, but it can also offer significant rewards. Before you invest, make sure to research each business carefully. Determine what their competitive advantages are and how those advantages will impact their long-term growth potential. With careful research, you can find the best chemicals stocks to buy for your portfolio.