Published on 25 Apr 2024 on Zacks via Yahoo Finance
4 Diversified Chemical Stocks to Gain From Demand Rebound
The Zacks Chemicals Diversified industry is poised to benefit from a recovery in demand in certain key markets, including consumer durables and building & construction, as the prolonged customer inventory de-stocking that hurt the industry for most of 2023 has largely ended.Eastman Chemical Company EMN, Avient Corporation AVNT, Innospec Inc. IOSP and Kronos Worldwide, Inc. KRO are well-placed to benefit from the rebound in demand. Strategic measures, including operating cost reductions and aggressive price hikes, are also helping these companies to tide over the still-challenging macroeconomic environment.
About the Industry
The Zacks Chemicals Diversified industry consists of manufacturers of basic chemicals, plastics, specialty chemicals and agricultural chemicals. Companies in this space serve a host of end markets, such as automotive, building & construction, transportation, electronics, aerospace and agriculture. Basic chemicals are produced in large quantities, and include petrochemicals and intermediates (such as ethylene, propylene and benzene), polymers (including plastic resins such as polyethylene, polypropylene and polyvinyl chloride), and inorganic chemicals (such as chlorine, caustic soda and titanium dioxide). Specialty chemicals that include catalysts, specialty polymers and coating additives are used in specific fields based on their performance. Agricultural chemicals include herbicides, fungicides and insecticides that are used to protect crops from disease, pests and weeds.