Around the world, in the US and abroad, the chemicals industry is considered as the epicenter of manufacturing, production and global industrial boom. This sector provides chemicals for the agricultural sector, construction, consumer industry and various other industries including plastic. Due to coronavirus in 2020, this sector came to a grinding halt because of which production declined, and the sector reported layoffs and massive debt. All the top chemical producers across the US and elsewhere around the globe massive decline in revenue. Now, in the backdrop of vaccine availability, production and business activities have resumed around the globe and according to analysts, this sector will witness strong recovery. The US chemical sector is likely to grow by 3.7% during 2021 whereas the production of various chemicals is likely to go up by 3.9% because various industries are likely to order chemicals for production. A report by McKinsey claims that the chemical industry along with the customer industries and raw-material supplies outperformed the market. The report further adds the major reason for this performance was that the industry was able to enhance earnings on the basis of the aggregate revenues and the fixed capital. This article provides information about the Best 5 Chemical Stocks as shared by Insider Monkey.
One of the major chemical companies is W R Grace & Co. This company is based in Maryland, USA. It specializes in production and manufacturing of specialty chemicals. The company was founded way back in 1854 and since then, it was declared bankrupt once. W R Grace has a strong presence in the US market with 80% market share. According to company sources, W R Grace is experiencing high growth and sales for 4th quarter of year 2020. During the third quarter, it reported a non-GAAP EPS of $0.56. Another popular US-based company is Dow Inc. It is headquartered in Michigan. The stocks of Dow Inc are one of the best stocks to buy during 2021. This company has a market cap of $41 billion. The stock price of Dow Inc. increased by 15% during the past 3 months. According to Evermore Global, “With respect to Corteva, Dow and DuPont, COVID-19 related shutdowns that started in China painted an ominous picture for the global macro landscape, and we exited our positions in these three companies that comprised the former DowDupont (DWDP) beginning in February. Additionally, numerous channel checks we performed indicated that various supply chains were being disrupted and stressed, a poor sign for three companies that are very global in nature.” Keep reading about more companies at 10 Best Chemical Stocks To Buy For 2021.
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