In this article, we will take a look at the 10 High-Growth Chemical Stocks to Buy.
The global chemicals sector is going through a complicated earnings period, affected by uneven demand and geopolitical disruptions. An article published by C&EN reported a projection from the American Chemistry Council, in which U.S. chemical output is estimated to grow only 0.3% in 2026, following 0.7% growth in 2025. The decline in the growth rate reflects an ongoing industrial softness despite cost advantages tied to lower energy inputs. The article further noted that the upward trend in borrowing costs alongside the uncertain macroeconomic conditions is delaying capital investments.
On the other hand, international pressures are intensifying. On April 13, 2026, Reuters reported anticipating weaker Q1 earnings among European chemical producers, owing to higher energy and feedstock costs caused by conflicts in the Middle East. Germany’s chemical industry association, Verband der Chemischen Industrie e.V. (VCI), indicated the sector’s high sensitivity to oil and gas price volatility. It further noted that the companies are implementing repeated price increases to protect margins, though demand remains fragile.
Amid such adverse conditions, some market participants remain positive and continue to track end-market recovery signals. Truist Securities’ Neil Ghosh, for instance, stated that a potential rebound in housing could directly elevate the demand for coatings, adhesives, and construction-linked chemicals.
Taking these perspectives into account, we have identified 10 high-growth chemical stocks that investors interested in the industry might consider for their portfolios.
Our Methodology
We have identified our 10 high-growth chemical stocks to buy by screening for stocks with positive upside potential. We ranked these stocks by the number of hedge funds holding a stake in each. The fourth-quarter hedge fund data available in the Insider Monkey database has been used for this purpose. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. All the pricing data are current as of market close on April 17, 2026.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. LSB Industries, Inc. (NYSE:LXU)
Number of Hedge Fund Holders: 23
LSB Industries, Inc. (NYSE:LXU) is one of the 10 High-Growth Chemical Stocks to Buy.
On April 7, 2026, RBC Capital downgraded LSB Industries, Inc. (NYSE:LXU) from Outperform to Sector Perform. The firm’s analyst Andrew Wong further adjusted the price target on the stock, raising it from $13 to $14. As per the research note, the conflict with Iran has driven higher cash generation for the company by creating an upward momentum for nitrogen prices. The firm also noted that the stock has now been fairly valued following a significant price rally since early March.
Prior to this, on March 26, 2026, UBS analyst Joshua Spector made a significant adjustment to the price target on LSB Industries, Inc. (NYSE:LXU), raising it from $9.75 to $16.50 while maintaining a Neutral rating on the shares. The firm anticipates higher nitrogen pricing to drive the earnings upwards. In the research note, the analyst pointed out that the current market disruptions are more severe than current gas prices reflect, potentially providing further upside.
Founded in 1968, LSB Industries, Inc. (NYSE:LXU) is a leading North American manufacturer of ammonia and ammonia-related products. The company has headquarters in Oklahoma and operates major chemical facilities in Alabama, Arkansas, and Oklahoma, serving the agricultural, industrial, and mining markets.
