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Best Chemical Stocks to Buy Now (2025)

Top chemical stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best chemical stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best chemical stocks to buy right now are:

Westlake Chemical Partners (NYSE:WLKP) is the #1 top chemical stock out of 17 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Westlake Chemical Partners (NYSE:WLKP) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: A, and AI: B.

Westlake Chemical Partners (NYSE:WLKP) has a Due Diligence Score of 33, which is 5 points higher than the chemical industry average of 28.

WLKP passed 14 out of 38 due diligence checks and has average fundamentals. Westlake Chemical Partners has seen its stock return 7% over the past year, overperforming other chemical stocks by 53 percentage points.

Valhi (NYSE:VHI) is the #2 top chemical stock out of 17 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Valhi (NYSE:VHI) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: B.

Valhi (NYSE:VHI) has a Due Diligence Score of 42, which is 14 points higher than the chemical industry average of 28.

VHI passed 15 out of 38 due diligence checks and has strong fundamentals. Valhi has seen its stock return 16.72% over the past year, overperforming other chemical stocks by 63 percentage points.

Rayonier Advanced Materials (NYSE:RYAM) is the #3 top chemical stock out of 17 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Rayonier Advanced Materials (NYSE:RYAM) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Rayonier Advanced Materials (NYSE:RYAM) has a Due Diligence Score of 17, which is -11 points lower than the chemical industry average of 28.

RYAM passed 6 out of 38 due diligence checks and has weak fundamentals. Rayonier Advanced Materials has seen its stock return 14.21% over the past year, overperforming other chemical stocks by 60 percentage points.

Rayonier Advanced Materials has an average 1 year price target of $11.00, an upside of 158.22% from Rayonier Advanced Materials's current stock price of $4.26.

Rayonier Advanced Materials stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Rayonier Advanced Materials, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 7 chemical stocks that have issued dividends in the past year, the 3 chemical stocks with the highest dividend yields are:

Tronox Holdings (NYSE:TROX) has an annual dividend yield of 9.24%, which is 5 percentage points higher than the chemical industry average of 4.65%. Tronox Holdings's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Tronox Holdings's dividend has not shown consistent growth over the last 10 years.

Tronox Holdings's dividend payout ratio of -161.3% indicates that its high dividend yield might not be sustainable for the long-term.

Huntsman (NYSE:HUN) has an annual dividend yield of 7.51%, which is 3 percentage points higher than the chemical industry average of 4.65%. Huntsman's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Huntsman's dividend has shown consistent growth over the last 10 years.

Huntsman's dividend payout ratio of -90.9% indicates that its high dividend yield might not be sustainable for the long-term.

Dow (NYSE:DOW) has an annual dividend yield of 4.58%, which is the same as the chemical industry average of 4.65%. Dow's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Dow's dividend has not shown consistent growth over the last 10 years.

Dow's dividend payout ratio of 700% indicates that its high dividend yield might not be sustainable for the long-term.

Chemical stocks were down -0.47% in the last day, and up 3.03% over the last week.

We couldn't find a catalyst for why chemical stocks are down.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued chemical stocks right now are:

Advansix (NYSE:ASIX) is the most undervalued chemical stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Advansix has a valuation score of 71, which is 49 points higher than the chemical industry average of 22. It passed 5 out of 7 valuation due diligence checks.

Advansix's stock has dropped -15.2% in the past year. It has overperformed other stocks in the chemical industry by 31 percentage points.

Valhi (NYSE:VHI) is the second most undervalued chemical stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Valhi has a valuation score of 71, which is 49 points higher than the chemical industry average of 22. It passed 5 out of 7 valuation due diligence checks.

Valhi's stock has gained 16.72% in the past year. It has overperformed other stocks in the chemical industry by 63 percentage points.

Methanex (NASDAQ:MEOH) is the third most undervalued chemical stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Methanex has a valuation score of 43, which is 21 points higher than the chemical industry average of 22. It passed 3 out of 7 valuation due diligence checks.

Methanex's stock has dropped -34.69% in the past year. It has overperformed other stocks in the chemical industry by 11 percentage points.

50% of chemical stocks rated by analysts are a hold right now. On average, analysts expect chemical stocks to rise by 41.26% over the next year.

0% of chemical stocks have a Zen Rating of A (Strong Buy), 14.29% of chemical stocks are rated B (Buy), 35.71% are rated C (Hold), 21.43% are rated D (Sell), and 28.57% are rated F (Strong Sell).