In this article, we will take a look at the 8 Best Specialty Chemicals Stocks to Invest In.
Specialty chemicals, when compared to bulk chemicals, are made for specific use cases and offer technical solutions that effectively address operational issues, including customized performance and added value. Since these high-performance compounds are produced in somewhat smaller quantities than commodity chemicals and command premium prices, the industry is strategically significant for global production and innovation, especially in a trade environment riddled with disruptions from volatility and tariffs.
According to a report by Renub Research, the Specialty Chemicals Market is expected to grow from $648.22 billion in 2024 to $1,006.46 billion by 2033, at a CAGR of 5.01%.
However, Europe’s chemical makers are facing new challenges as U.S. import tariffs disrupt international trade, causing clients to delay purchases and lowering demand in a sector still fighting to recover after the region’s 2022 energy crisis. Chemicals, the EU’s fourth-largest export sector behind equipment, automobiles, and pharmaceuticals, has struggled in recent years with high manufacturing costs as gas and power prices skyrocketed following the Russian invasion of Ukraine.
Our Methodology
For our list of the best specialty chemicals stocks to invest in, we started with a list of stocks pulled from ETFs, stock screeners, and web rankings. We then utilized Insider Monkey’s Q2 2025 database to discover the best stocks held by hedge funds. The list is organized in ascending order of hedge fund sentiment around each stock.
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).
8. Gevo, Inc. (NASDAQ:GEVO)
Number of Hedge Fund Holders: 5
Gevo, Inc. (NASDAQ:GEVO) ranks among the best specialty chemicals stocks to invest in. Gevo, Inc. (NASDAQ:GEVO) and Frontier Infrastructure Holdings LLC announced on September 22 that they will collaborate to provide ethanol producers with North America’s first fully integrated carbon management platform, which would include digital carbon tracking, permanent sequestration, and transit by train.
The collaboration focuses on more than 200 ethanol plants in North America that generate over 70 million tons of high-purity CO₂ a year.
The agreement combines Gevo, Inc. (NASDAQ:GEVO)’s experience in bioenergy carbon capture and Verity digital tracking with Frontier’s Sweetwater Carbon Storage Hub in Wyoming. Meanwhile, Union Pacific Railroad will carry CO₂, establishing a pipeline-independent alternative.
Gevo, Inc. (NASDAQ:GEVO) is an American company that produces, manufactures, and distributes sustainable, low-carbon biofuel and chemical products.
7. Sasol Limited (NYSE:SSL)
Number of Hedge Fund Holders: 8
Sasol Limited (NYSE:SSL) ranks among the best specialty chemicals stocks to invest in. In a warning that recent share gains are concealing weak free cash flow forecasts and long-term risks to its South African business, Morgan Stanley lowered the rating of Sasol Limited (NYSE:SSL) from Overweight to Equal-weight on September 22.
Improved cash flow in the second half, advancements in cost-cutting initiatives, and hope for China’s policy changes all contributed to the stock’s recent increase. However, according to the firm, a large portion of the debt reduction in fiscal 2025 was due to short-term variables such dividend revenues, working capital unwind, and a Transnet payment.
Even while refining margins helped somewhat, the bank predicted that longer-term risks would undo some of Sasol’s gains.
Sasol Limited (NYSE:SSL) is a global integrated energy and chemical company that operates via two primary divisions: Energy and Chemical, with activities in 33 countries.
6. NewMarket Corporation (NYSE:NEU)
Number of Hedge Fund Holders: 22
NewMarket Corporation (NYSE:NEU) ranks among the best specialty chemicals stocks to invest in. On September 17, NewMarket Corporation (NYSE:NEU) declared that it had finalized a deal to acquire Mars TopCo, LLC from AE Industrial Partners.
Based in Lake Charles, Louisiana, Calca produces high purity hydrazine and UltraPure, which are chemicals used in satellite and other space craft propulsion systems. Through the acquisition, NewMarket Corporation (NYSE:NEU) will increase its footprint in the aerospace and defense industries and solidify its position in mission-critical chemicals.
This agreement, which is expected to finalize in 2025, would be NewMarket’s second recent acquisition in these sectors.
NewMarket Corporation (NYSE:NEU) is a major player in the petroleum additives market. The company supplies essential components for hydraulic fluids, engine oils, and biofuels to the automotive, industrial, and commercial sectors worldwide.
5. H.B. Fuller Company (NYSE:FUL)
Number of Hedge Fund Holders: 24
H.B. Fuller Company (NYSE:FUL) ranks among the best specialty chemicals stocks to invest in. On September 24, H.B. Fuller Company (NYSE:FUL) posted third-quarter adjusted results that marginally exceeded expectations, though it lowered its full-year guidance due to a challenging global economic environment.
The adhesives producer reported third-quarter adjusted EPS of $1.26, up $0.01 from analyst projections and 12% year-over-year. Revenue came down 2.8% from the same period the previous year at $892 million, which was less than the consensus projection of $896.55 million.
Despite the revenue shortfall, H.B. Fuller’s profitability measures improved, as evidenced by its $171 million adjusted EBITDA, which was up 3% year-over-year, and its adjusted EBITDA margin, which increased by 110 basis points to 19.1%. The company credited focused cost-cutting initiatives, raw material cost control, and advantageous pricing strategies for the margin improvement.
H.B. Fuller Company (NYSE:FUL) is a maker of specialized chemicals, primarily industrial adhesives. The company develops, manufactures, and markets adhesives, sealants, and other specialty chemicals for a wide range of sectors around the world.
4. Avient Corporation (NYSE:AVNT)
Number of Hedge Fund Holders: 30
Avient Corporation (NYSE:AVNT) ranks among the best specialty chemicals stocks to invest in. On September 17, KeyBanc began coverage of Avient Corporation (NYSE:AVNT) with a price target of $48 and an Overweight rating. The firm stated that, under the direction of its newly appointed CEO Ashish Khandpur, Avient has been implementing a new organic growth plan.
According to KeyBanc analyst Aleksey Yefremov, Avient Corporation (NYSE:AVNT) intends to increase cross-selling prospects while focusing more on high-growth select platforms and markets.
As part of its strategic ambitions, the company is also attempting to integrate innovations and expertise from several segments. KeyBanc emphasized that in order to facilitate the launch of this expansion strategy, Avient Corporation (NYSE:AVNT) has made a number of important hires and put in place a new incentive program.
Avient Corporation (NYSE:AVNT) is a specialty polymer materials manufacturer based in Avon Lake, Ohio. Its offerings include thermoplastic compounds, plastic colorants, and additives, among others.
3. LyondellBasell Industries N.V. (NYSE:LYB)
Number of Hedge Fund Holders: 33
LyondellBasell Industries N.V. (NYSE:LYB) ranks among the best specialty chemicals stocks to invest in. Evercore ISI reaffirmed its In Line rating on LyondellBasell Industries N.V. (NYSE:LYB) and lowered its price target from $90 to $65 on September 23. The price target has been lowered in light of Evercore ISI’s revised evaluation of LyondellBasell’s profits potential. The firm now projects a “near/medium-term’mid-cycle’ EBITDA of $5.5 Bn.”
Evercore ISI backs the decreased value based on a number of factors, including the fact that European operations are “right-sizing,” oxyfuels are “no longer over-earning,” and that the industry “oversupply” is predicted to persist into the latter part of the decade.
According to the firm, investors in the chemical industry are likely to wait for “tangible indications of improving conditions” before recognizing any recovery in profitability for companies such as LyondellBasell Industries N.V. (NYSE:LYB).
LyondellBasell Industries N.V. (NYSE:LYB) is a global leader in the production of chemicals, plastics, and polymers for a wide range of applications, including packaging, automotive components, and construction materials.
2. The Chemours Company (NYSE:CC)
Number of Hedge Fund Holders: 48
The Chemours Company (NYSE:CC) ranks among the best specialty chemicals stocks to invest in. Mizuho maintained its Outperform rating on The Chemours Company (NYSE:CC) and raised its price target from $16 to $19 on September 23. The increase is mostly attributable to higher market multiples, as Mizuho used a higher multiple of roughly 6.5x next-twelve-months EBITDA instead of the previous 6.0x multiple.
With the impending DuPont split, Qnity’s recent bond offering, and rumors of a possible Corteva split, Mizuho pointed out that concerns over shared PFAS liabilities have been growing.
The firm further noted that The Chemours Company (NYSE:CC) is not trading as if PFAS tail risk is likely, which is consistent with the firm’s own opinion that, unless Chemours goes bankrupt, there seems to be little lingering liability.
The Chemours Company (NYSE:CC) manufactures industrial and specialty products for a variety of industries, including coating, plastics, semiconductors, transportation, oil and gas, refrigeration and air conditioning, among others.
1. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 49
DuPont de Nemours, Inc. (NYSE:DD) ranks among the best specialty chemicals stocks to invest in. On September 22, KeyBanc maintained its Overweight rating on DuPont de Nemours, Inc. (NYSE:DD) and increased its price target for the chemical company’s shares from $92 to $93. The update followed KeyBanc’s attendance at investor days for DuPont and its future spinoff firm Qnity Electronics. Following the Qnity spin-off, KeyBanc stated it was more confident in its sum-of-the-parts (SOTP) valuation approach, which projects a 20–25% upside potential for DuPont de Nemours, Inc. (NYSE:DD).
KeyBanc considers management’s organic growth goals to be “modestly conservative,” with Qnity Electronics looking for 6-7% growth and DuPont de Nemours, Inc. (NYSE:DD) for 3-4%. According to the firm, there is a greater than 50% chance that both companies will surpass these goals in the next couple of years.
DuPont de Nemours, Inc. (NYSE:DD), based in Delaware, is a leading provider of technology-driven materials and solutions. It operates in three primary segments: Electronics & Industrial, Water & Protection, and Corporate & Other.
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