As economy rebounds, five chemical stocks to explore

Highlights

• Tronox Holdings Plc (NYSE: TROX) reported total revenue of US$927 million in Q2, 2021.
  
  
• Air Products and Chemicals’ (NYSE APD) EPS was US42.36 in Q3, 2021.
  
  
• Eastman Chemical Company (NYSE: EMN) incurred losses of US$146 million in Q2, 2021.

The chemical industry produces raw materials used in manufacturing, automobiles, production, packaging, construction, etc. According to the American Chemistry Council, chemical production is set to increase by 3.9 percent due to increased demand from various industries.

Here we explore the top five chemical stocks in the market.

Tronox Holdings PLC (NYSE: TROX)

The company is headquartered in Connecticut and produces various titanium chemicals. The company’s total revenue was US$927 million in Q2 of 2021 against US$578 million in Q2 last year.

The gross profit was US$227 million against US$129 million a year ago. Its net income was US$73 million compared to a loss of US$4 million in Q2 last year.

The stock traded at US$20.64 at 12.33 pm ET on August 26, down 1.43 percent from the previous close. The stock rose 40.63 percent YTD.

TROX’s market cap is US$3.1 billion, the P/E ratio is 2.91, and the forward P/E one year is 8.95. EPS is US$7.07. Its annual dividend is US$0.40. The company’s 52-week highest and lowest stock prices were US$24.81 and US$7.61.

Also read: Which are the popular industrial stocks to explore in August?

Air Products and Chemicals, Inc. (NYSE APD)

This company is based in Pennsylvania and produces chemicals used in metals, electronics, and food and beverage industries.

The company’s EPS was US$2.36 in Q3, 2021, up 17 percent YoY. The net income was US$532 million, an increase of 32 percent YoY. The adjusted EBITDA was US$976 million, up 11 percent YoY.

The stock traded at US$269.4, up 0.11 percent, at 12.41 pm ET. Its stock value fell by 1.03 percent YTD.

It has a market cap of US$59 billion, a P/E ratio of 30.42, and a forward P/E one year of 29.87. Its annual dividend is US$6. The company’s 52-week highest and lowest stock prices were US$327.89 and US$245.75, respectively.

Source: Pixabay.

Eastman Chemical Company (NYSE: EMN)

The company is based in Tennessee and produces chemicals used in various constructions and coating industries.

In Q2 of 2021, the company recorded revenue of US$2.6 billion compared to US$1.9 billion a year ago. The gross profit was US$681 million against US$371 million in Q2 last year. Its losses were US$146 million in Q2 2021. 

The stocks traded at US$113.11 at 12.52 pm ET on August 26, up 0.65 percent. The stock rose 12.88 percent YTD. 

It has a market cap of US$15.3 billion, a P/E ratio of 48.52, and a forward P/E one year of 12.33. Its EPS is US$2.33. The annual dividend is US$2.76. The stock’s 52-week highest and lowest prices were US$130.47 and US$72.02.

Source: Pixabay.

W.R. Grace & Co. (NYSE: GRA)

The company is headquartered in Maryland and produces specialty chemicals used in industries like coating and pharmaceuticals.

The company’s total revenue rose to US$512.9 million in Q2, 2021, from US$418.7 million in Q2, 2020. The gross profit was US$194.7 million compared to US$119.3 million in Q2 last year. The net income was US$45.4 million against a loss of US$7.3 million in Q2 last year. 

The stock was priced at US$69.60 at 1.02 pm ET on August 26, up 0.12 percent. Its stock prices rose by 26.96 percent YTD. 

It has a market cap of US$4.6 billion, a P/E ratio of 60, and a forward P/E one year of 17.83. The EPS is US$1.16, and the annual dividend is US$0.63. The stock’s 52-week highest and lowest stock prices were US$69.75 and US$38.70.

Also read: Are these five industrial stocks redefining the American dream?

Dow Inc. (NYSE: DOW)

Dow Inc. is headquartered in Michigan and produces chemicals for various industries like plastic, packaging, construction, etc.

Dow’s total revenue was US$13.8 billion in Q2, 2021, against US$8.3 billion in Q2 last year. The gross profit was US$3.1 billion in Q2 compared to US$750 million in Q2 the previous year. The net income was US$1.8 billion against a loss of US$227 million in Q2 last year.

The stocks traded at US$64.195 at 1.10 pm ET on August 26, up 0.51 percent. The stock gained 15.61 percent YTD. 

Dow’s market cap is US$47.8 billion, the P/E ratio is 11.8, and the forward P/E one year is 7.65. The EPS is US$5.44, and the annual dividend is US$2.80. Dow’s 52-week highest and lowest stock prices were US$71.38 and US$44.33.

Bottom line:

The chemical companies suffered losses during the pandemic as the economic activities slowed down. However, the industry is hopeful of a sustained recovery as the economy regains strength from covid disruptions.