5 Best US Chemical Stocks To Buy Now

3. Univar Solutions Inc. (NYSE:UNVR)

Number of Hedge Fund Holders: 40

Univar Solutions Inc. (NYSE:UNVR) was founded in 1924 and is headquartered in Downers Grove, Illinois. It manufactures and markets commodity and specialty chemical products worldwide. The company provides epoxy resins, polyurethanes, titanium dioxide, fumed silica, esters, plasticizers, silicones, and specialty amines. Univar Solutions Inc. (NYSE:UNVR) is one of the best chemical stocks to monitor. 

On March 14, Barclays analyst Michael Leithead increased Univar Solutions Inc. (NYSE:UNVR)’s price target from $33 to $36 and maintained an Equal Weight rating on the stock after the announcement of the company’s acquisition by Apollo Global. The analyst believes that the deal is a good outcome for Univar Solutions Inc. (NYSE:UNVR) shareholders and does not anticipate any higher offers for the company.

According to Insider Monkey’s fourth quarter database, 40 hedge funds were long Univar Solutions Inc. (NYSE:UNVR), compared to 31 funds in the prior quarter. First Pacific Advisors is the biggest stakeholder of the company. 

Rhizome Partners made the following comment about Univar Solutions Inc. (NYSE:UNVR) in its Q3 2022 investor letter:

“Univar Solutions Inc. (NYSE:UNVR) reported a 30.2% increase in revenue and a 52.7% increase in adjusted EBITDA during the second quarter. The company provided positive earnings guidance for the third quarter 2022 and for the full year. For the year 2022, free cash flow guidance was in the range of $400 to $450 million. At quarter-end, the stock was trading at 8.4 to 9.5 times price-to-free-cash-flow multiple. Univar’s guidance also projects specialty chemical growth 2% higher than economic consensus as well as productivity improvements through organization. The company expects leverage to be between 2.0 and 2.5 times net debt to EBITDA and will return 20% to 30% of adjusted net income to shareholders. The company shrank its share count by 1.7% in six months and has the authorization to buy back 9.1% of the shares outstanding.”