5 Best Chemical Stocks To Buy Now

In this article, we discuss 5 best chemical stocks to buy now. If you want to see more stocks in this selection, check out 14 Best Chemical Stocks To Buy Now. 

5. Celanese Corporation (NYSE:CE)

Number of Hedge Fund Holders: 36

Celanese Corporation (NYSE:CE) is a Texas-based technology and specialty materials company that operates through three segments – Engineered Materials, Acetate Tow, and Acetyl Chain. The Acetyl Chain segment produces and supplies acetyl products, such as acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters, which are starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals. The company also manufactures organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. 

On November 10, Deutsche Bank analyst David Begleiter reiterated a Buy recommendation on Celanese Corporation (NYSE:CE) but trimmed the price target on the shares to $105 from $110 following the Q3 results. The analyst believes that an EPS of $13-$14 is achievable in 2023.

According to Insider Monkey’s Q3 data, 36 hedge funds were bullish on Celanese Corporation (NYSE:CE), and Warren Buffett’s Berkshire Hathaway held the leading position in the company, comprising 9.71 million shares worth $877.2 million.  

Here is what Vltava Fund has to say about Celanese Corporation (NYSE:CE) in its Q1 2022 investor letter:

“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stocks of Celanese (CE).

Celanese is the world’s largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomers and emulsions. Their applications are used in a wide range of industries, such as automotive tobacco, coatings, construction, energy, telecommunications, food, and medical. Celanese recently closed the acquisition of a large part of DuPont’s business, which will make Celanese an even bigger player in the industry while reducing the cyclicality of its business. The acquisition is quite large and should deliver significant value to shareholders that in our view is not at all presently reflected in the share price. Celanese is a business that stands more or less aside from the main interests of most investors, but it is a company with very high returns on capital, strong free cash flow, and historically very efficient resource allocation.”