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.
8. LyondellBasell Industries (NYSE:LYB)
Stock Upside Potential as of July 16: 1.12%
Number of Hedge Fund Holders: 38
Number of Billionaire Investors: 8
LyondellBasell Industries (NYSE:LYB) is one of the best chemical stocks to buy, according to billionaires. On July 3, RBC Capital analyst Arun Viswanathan increased the stock’s price target to $64 from $61.
The price hikes come as the research firm maintains a ’Sector Perform’ rating on the stock. The bullish rating comes as the company continues to make significant progress in strengthening near-term cash generation. The company also boasts financial and operational discipline that allows it to navigate macroeconomic challenges effectively.
LyondellBasell Industries (NYSE:LYB) is a global chemical company that produces and markets a wide range of products, including plastics, chemicals, and fuels. It is a leading producer of polypropylene and polyethylene resins, and its products are used in various industries, including packaging, construction, automotive, and healthcare.
7. PPG Industries, Inc. (NYSE:PPG)
Stock Upside Potential as of July 16: 9.23%
Number of Hedge Fund Holders: 38
Number of Billionaire Investors: 8
PPG Industries, Inc. (NYSE:PPG) is one of the best chemical stocks to buy, according to billionaires. On June 23, Mizuho reiterated an ‘Outperform’ rating on the stock and a $125 price target. The bullish stance is in response to the research firm’s meeting with the company’s CFO, Vince Morales, and Director of Investor Relations, Alex Lopez.
Following the meeting, PPG management acknowledged the lack of organic growth, citing an increased focus on mergers and acquisitions. However, the focus has since shifted towards accelerating organic growth with plans to achieve 2% to 4% growth. Mizuho has since maintained its earnings estimates for PPG Industries with no changes on financial projections.
In addition, the research firm is impressed by the company’s commitment to returning value to shareholders, depicted by 54 consecutive years of dividend payments. Share Buybacks have also emerged as a key priority for capital deployment.
PPG Industries, Inc. (NYSE:PPG) is a chemicals company that supplies paints, coatings, optical products, and specialty materials. It serves various industries, including industrial, transportation, consumer products, and construction, with products designed to protect and enhance surfaces.
6. Eastman Chemical Company (NYSE:EMN)
Stock Upside Potential as of July 16: 18.65%
Number of Hedge Fund Holders: 40
Number of Billionaire Investors: 8
Eastman Chemical Company (NYSE:EMN) is one of the best chemical stocks to buy, according to billionaires. On June 27, the company strengthened its management team with the appointment of Mr. Damon Audia, CFO of AGCO Corporation (NYSE:AGCO), to its board.
Eastman Chemical Company will leverage Audia’s extensive experience in finance and strategic acumen as it continues to pursue its vision of innovation and growth.
“Damon’s leadership and deep understanding of business strategy and experience across diverse industries, including automotive and agriculture, will contribute significantly to our mission of delivering relevant and innovative solutions to our customers,” said Mark Costa, Board Chair and CEO.
Eastman Chemical Company (NYSE:EMN) is a specialty Materials Company that produces materials used in everyday consumer products. It makes a wide range of chemicals, plastics, and fibers that serve diverse industries, including transportation, construction, electronics, and healthcare.
5. Sensient Technologies Corporation (NYSE:SXT)
Stock Upside Potential as of July 16: 1.08%
Number of Hedge Fund Holders: 28
Number of Billionaire Investors: 9
Sensient Technologies Corporation (NYSE:SXT) is one of the best chemical stocks to buy, according to billionaires. On July 1, the company confirmed it had amended its trade receivables securitization program.
With the amendment, the facility’s limit increased to $105 million from $85 million, with termination slated for August 31, 2026. Sensient Technologies Corporation entered into a new agreement with Sensient Receivables LLC and Wells Fargo Bank, National Association
Under the terms of the agreement, Sensient Receivables will act as the seller, Sensient Technologies serves as the initial servicer and performance guarantor, and Wells Fargo is the purchaser.
Sensient Technologies Corporation (NYSE:SXT) is a manufacturer and marketer of colors, flavors, and other specialty ingredients. Its solutions are used in the food and beverage, pharmaceutical, nutraceutical, and personal care industries.
4. Element Solutions Inc (NYSE:ESI)
Stock Upside Potential as of July 16: 11.71%
Number of Hedge Fund Holders: 36
Number of Billionaire Investors: 12
Element Solutions Inc (NYSE:ESI) is one of the best chemical stocks to buy, according to billionaires. On July 8, Truist Securities reiterated a ‘Buy’ rating on the stock and a $24 price target. The buy stance is in response to the company’s second-quarter pre-announcement.
The company expects its second-quarter adjusted EBITDA to come in at $135 million, exceeding the $125 million that Truist Securities had expected. The better-than-expected earnings are driven by strength in the high-margin Electronics business.
Additionally, Element Solutions has increased its full-year adjusted EBITDA guidance to between $530 million and $550 million. It is a significant improvement from the previous guidance of between $520 million and $540 million. According to Truist Securities, the company is benefiting from robust growth in data centers and advanced semiconductor packaging.
Element Solutions Inc (NYSE:ESI) develops and manufactures specialty chemicals. It provides a range of chemical systems for cleaning, preparing, and protecting metal and plastic surfaces. Its coatings are used in various industries, including automotive, aerospace, and consumer electronics.
3. International Flavors & Fragrances Inc. (NYSE:IFF)
Stock Upside Potential as of July 16: 22.79%
Number of Hedge Fund Holders: 47
Number of Billionaire Investors: 12
International Flavors & Fragrances Inc. (NYSE:IFF) is one of the best chemical stocks to buy, according to billionaires. On June 26, the company unveiled CHOOZIT LIFT, designed to enhance the production of semi-hard cheeses, offering significant sustainability and business benefits.
CHOOZIT LIFT leverages the company’s bioscience expertise by combining advanced strain design with practical cheesemaking knowledge. The solution seeks to eliminate the curd washing step in the cheesemaking process, therefore reducing water and energy use in production while maintaining high quality.
“CHOOZIT LIFT helps combine the centuries-old craft of cheesemaking with cutting-edge bioscience to unlock that future,” said Annie Mornet, senior business product director for cheese at IFF. “
Cheese makers can manage post-acidification and reduce the risk of excessive acid development by using CHOOZIT LIFT. That’s because the ready-to-use culture solution blends several bacterial strains to naturally lower the lactose level of whey, providing a uniform flavor free of bitterness.
International Flavors & Fragrances Inc. (NYSE:IFF) is a global company that creates and manufactures flavors and fragrances for a wide variety of consumer products. They are a leading provider of ingredients and solutions for the food, beverage, health, biosciences, and scent industries.
2. DuPont de Nemours, Inc. (NYSE:DD)
Stock Upside Potential as of July 16: 12.70%
Number of Hedge Fund Holders: 64
Number of Billionaire Investors: 13
DuPont de Nemours, Inc. (NYSE:DD) is one of the best chemical stocks to buy, according to billionaires. On July 3, Citi reiterated that DuPont is its top pick Among North American specialty chemical stocks. The remarks come as the research firm expects the company to deliver solid second-quarter results.
The research firm expects the company to benefit from foreign exchange gains and improved margin trends in the electronics sector. Citi also expects investor interest in DuPont to increase ahead of its split into two units.
Amid the expected split, Citi has raised its full-year 2025 EBITDA estimate by 1%, impressed by strong performance in the electronics segment. The firm also expects DuPont to deliver moderate sales improvements in its water and healthcare segments.
DuPont de Nemours, Inc. (NYSE:DD) is a chemicals company that provides materials and solutions to various industries. Its products include adhesives, advanced printing solutions, and materials for semiconductors and circuit boards.
1. Ecolab Inc. (NYSE:ECL)
Stock Upside Potential as of July 16: 6.08%
Number of Hedge Fund Holders: 63
Number of Billionaire Investors: 15
Ecolab Inc. (NYSE:ECL) is one of the best chemical stocks to buy, according to billionaires. On July 9, UBS analyst Joshua Spector reiterated a ‘Neutral’ rating on the stock. However, the research firm increased the stock’s price target to $288 from $271.
According to UBS analysts, Ecolab is one of the companies well-positioned to experience less severe impacts from tariffs that downstream companies might face. Nevertheless, the research firm has warned that commodity markets are likely to remain under pressure due to weakening demand trends.
Ecolab boasts a diverse portfolio that spans water treatment, hygiene, life sciences, and digital technologies. In addition, its pest control solutions provide a competitive edge, along with advanced solutions such as the 3D TRASAR AI Dishmachine Program and the Ecolab 3D Cloud platform.
Ecolab Inc. (NYSE:ECL) is a chemicals company specializing in providing water, hygiene, and infection prevention solutions and services. It offers a range of products and services to various industries, including food service, healthcare, and industrial markets, to help customers maintain clean and safe environments.
While we acknowledge the potential of Ecolab Inc. (NYSE:ECL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ECL and that has 100x upside potential, check out our report about this cheapest AI stock.
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