Olin Corp. (OLN) Declined on Weak Earnings Results

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Fundamental Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index fell by 4.3% during the first quarter of 2025. Until March, the market had been performing well, but investors began to struggle with the rapid policymaking of the Administration, especially concerning tariffs. In a significant shift from recent trends, the downturn was primarily driven by large-cap growth stocks. The Hotchkis & Wiley Large Cap Fundamental Value Fund (I Shares) returned 2.52% in the first quarter, outperforming the Russell 1000 Value Index’s 2.14% return. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund highlighted stocks such as Olin Corporation (NYSE:OLN). Headquartered in Clayton, Missouri, Olin Corporation (NYSE:OLN) is a chemical products manufacturer. The one-month return of Olin Corporation (NYSE:OLN) was -8.27%, and its shares lost 58.22% of their value over the last 52 weeks.  On June 9, 2025, Olin Corporation (NYSE:OLN) stock closed at $20.97 per share, with a market capitalization of $2.414 billion.

Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding Olin Corporation (NYSE:OLN) in its Q1 2025 investor letter:

“Olin Corporation (NYSE:OLN) is one of the largest producers of chlor alkali chemicals and chlorine derivatives. The stock price fell during the quarter after posting weak earnings results due to low operating rates, weak commodity prices, and continued destocking in the Winchester business. Chlorine derivative and caustic soda prices should increase over time as the North American chlor alkali industry faces a tightening 5+ year supply/demand outlook. As the swing producer in North America, Olin should capture more than its share of the industry’s volume improvement off the trough. Olin’s balance sheet is strong, and capital allocation has been shareholder friendly. The company continues to provide diversification benefits to our existing commodity exposure.”

Is Olin Corporation (OLN) the Undervalued Chemical Stock to Buy Now?

A factory worker in heavy protective clothing, overseeing the production of chlorine.

Olin Corporation (NYSE:OLN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Olin Corporation (NYSE:OLN) at the end of the first quarter, which was 38 in the previous quarter. While we acknowledge the potential of Olin Corporation (NYSE:OLN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Olin Corporation (NYSE:OLN) and shared the list of undervalued chemical stocks to buy. Olin Corporation (NYSE:OLN) detracted from Hotchkis & Wiley Large Cap Fundamental Value Fund in the previous quarter, due to disappointing earnings results. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.