In this article, we will take a detailed look at the 10 Best Chemical Stocks to Buy According to Billionaires.
The US stock market has come full circle from its April lows back to all-time highs amid waning concerns that the US economy would crumble under the weight of the trade war. Tariff fears and a potential economic slowdown have raised concerns about US chemical producers. However, not anymore.
US chemical producers have seen little direct impact from tariffs, as chemical demand primarily comes from domestic production. While China did propose a 10% tariff on US chemicals, it was not high enough to disrupt the cost advantages.
Amid the recovery in the equity markets, John Davi, founder and CEO of investment management company Astoria Portfolio Advisors, believes investors should focus on re-risking their portfolios. According to Davi, investors should focus their attention on investment plays beyond growth stocks as uncertainties slowly fade.
“Now we’re at a point where earnings revision breadth has had this V-shape recovery. We have a weaker dollar. We’ve got policy uncertainty that’s declined … fewer tariffs. We have renewed optimism over AI,” Davi told CNBC.
The focus should be on opportunities in energy, real estate, fixed income, and industrials, where chemical stocks are a major component.
“There’s all this risk still out there, right. But really, if you strip out the ‘Mag 7,’ the S & P 500 is not that expensive,” Davi said.
With that in mind, let’s look at the 10 Best Chemical Stocks to Buy According to Billionaires.
A factory worker monitoring a conveyor belt of specialty chemicals being produced.
Our Methodology
To compile the list of the 10 Best Chemical Stocks to Buy According to Billionaires, we scanned US equity markets focusing on companies with significant exposure to specialty chemicals. We focused on stocks popular among billionaires and detailed their upside potential. We ranked the top 10 stocks in ascending order by the number of billionaire investors holding stakes as of Q4 2024. Each listing also includes hedge fund sentiment insights sourced from Insider Monkey’s Q1 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Chemical Stocks to Buy According to Billionaires
10. Sociedad Química y Minera de Chile SA (NYSE:SQM)
Stock Upside Potential as of July 16: 15.33%
Number of Hedge Fund Holders: 14
Number of Billionaire Investors: 3
Sociedad Química y Minera de Chile SA (NYSE:SQM) is one of the best chemical stocks to buy, according to billionaires. On June 25, the company commenced a series of layoffs targeting 5% of its workforce in Chile in response to a slump in global prices for battery metals.
The layoffs in the lithium and fertilizer units are not expected to affect the company’s core operations or production guidance. The company has already confirmed that 25% to 30% of the layoffs will affect general roles, and the rest will affect supervisors in Chile.
The layoffs come on the heels of Sociedad Química y Minera de Chile S.A.’s first-quarter results, which missed estimates. The company has already warned that weak prices would persist through the first half of the year. Lithium prices have already plunged by 90% from the 2022 peak.
Sociedad Química y Minera de Chile SA (NYSE:SQM) is a Chilean chemical and mining company that produces and commercializes lithium, iodine, potassium, and specialty fertilizers. Its products are used in various industries, including batteries, pharmaceuticals, agriculture, and industrial applications.
9. Westlake Corporation (NYSE:WLK)
Stock Upside Potential as of July 16: 7.13%
Number of Hedge Fund Holders: 32
Number of Billionaire Investors: 8
Westlake Corporation (NYSE:WLK) is one of the best chemical stocks to buy, according to billionaires. On June 14, Wells Fargo analyst Michael Sison increased the stock’s price target to $90 from $76. Additionally, the analyst reiterated an ‘Equal-Weight’ rating for the stock.
The stock rating and price target hike underscore the analyst’s confidence in the petrochemical company’s prospects. The analyst expects the company to perform in line with the market or better in the future.
The bullish stance comes after the company announced the shutdown of its Pernis, Netherlands plant as it continues to trim European footprint. The shutdown is part of the company’s European optimization strategy as it seeks to focus more on specific chemical production lines.
Westlake Corporation (NYSE:WLK) is a chemicals company that manufactures and supplies essential products, including petrochemicals, polymers, and building products. Its products form the building blocks for many everyday items, from food packaging and medical devices to car interiors and construction materials.
Hedge Fund Resource Center