2 Top-Rated Chemical Companies To Buy Now

NYSE: EMN | Eastman Chemical Company  News, Ratings, and Charts

The chemicals industry, which was already facing cyclical challenges such as overcapacity, pricing pressures, and trade uncertainty in the pre-pandemic period, came to what felt like a screeching halt at the beginning of the COVID-19 pandemic last year. According to the American Chemistry Council (ACC), U.S. chemical output fell 3.6% in 2020.

The industry is now regaining momentum after coping with supply disruptions, falling demand, and shrinking revenue. The new Presidential administration has pledged to review industry tariffs and is advocating a revised trade deal with China, thereby ending a four-year trade dispute with the Asian giant. This could boost U.S. chemical exports and improve the industry’s profitability through a potential rebound in prices. The American Chemistry Council estimates chemical production will rise 3.9% in 2021.

Given these developments, companies such as Eastman Chemical Company (EMN - Get Rating) and Huntsman Corporation (HUN - Get Rating) have implemented strategic initiatives in areas such as R&D and technology. They are also investing in innovation and emerging applications. Hence, we think these stocks could be good additions to your portfolio now.

Eastman Chemical Company (EMN - Get Rating)

EMN is a global advanced material and specialty additives company. It serves attractive end-markets such as transportation, building and construction, and consumables. The Company’s segments include Additives & Functional Products, Advanced Materials, Chemical Intermediates, and Fibers.

Last week, EMN announced its plans to build one of the world’s largest plastic-to-plastic molecular recycling facilities at its site in Tennessee at a $250 million cost. The facility will convert polyester waste into durable products, creating an optimized circular economy. This investment shows EMN’s commitment to addressing the global waste crisis and to mitigating factors that contribute to climate change, while also creating value for its stakeholders.

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