We came across a bullish thesis on The Chemours Company on FelixQE’s Substack. In this article, we will summarize the bulls’ thesis on CC. The Chemours Company’s share was trading at $18.41 as of February 24th. CC’s trailing and forward P/E were 61.78 and 7.20 respectively according to Yahoo Finance.
Syda Productions/Shutterstock.com
The Chemours Company provides performance chemicals in North America and internationally. CC presents a contrarian investment opportunity, offering a unique blend of cyclical recovery, structural growth, and attractive valuation. The company is currently overshadowed by the PFAS litigation overhang, which has weighed heavily on sentiment and pushed its valuation to 0.31x sales, well below the industry average of 1.08x.
This pricing reflects significant market pessimism, effectively discounting much of the legal risk. Despite this, Chemours’ core operations remain fundamentally strong. Its Opteon refrigerants business and Advanced Performance Materials segment are well-positioned for secular growth, particularly as demand rises from data centers and semiconductor industries. These end markets provide durable tailwinds that could drive meaningful revenue and margin expansion over the coming years.
The company is navigating the litigation cycle, and 2026 is expected to be a pivotal year as settlement visibility improves, potentially removing a major uncertainty that has suppressed the stock. For investors able to tolerate legal risk, Chemours offers exposure to high-quality businesses at deeply discounted valuations.
The combination of an undervalued stock, structurally growing end markets, and the potential resolution of PFAS liabilities creates a compelling risk/reward setup. With the market already pricing in much of the downside, any positive developments around litigation settlements or operational execution could lead to a significant rerating of the shares, making it an attractive entry point for long-term investors seeking both value and growth upside.
Previously, we covered a bullish thesis on Eastman Chemical Company (EMN) by Necessary-Damage5658 in November 2024, highlighting its positioning amid export control changes and growth in agriculture and medical chemicals. EMN’s stock has depreciated by 23.70% since our coverage. FelixQE takes a contrarian view on The Chemours Company (CC), emphasizing discounted valuation, secular growth, and potential PFAS litigation resolution as a rerating catalyst.
The Chemours Company is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held CC at the end of the third quarter which was 48 in the previous quarter. While we acknowledge the risk and potential of CC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW
Disclosure: None.
