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Best Chemical Stocks to Buy Now (2023)

Top chemical stocks in 2023 ranked by overall Zen Score. See the best chemical stocks to buy now, according to analyst forecasts for the chemicals industry.

According to Zen Score, the 3 best chemical stocks to buy right now are:

Tronox Holdings (NYSE:TROX) is the top chemical stock with a Zen Score of 68, which is 26 points higher than the chemical industry average of 42. It passed 26 out of 38 due diligence checks and has strong fundamentals. Tronox Holdings has seen its stock lose -37.46% over the past year, underperforming other chemical stocks by -20 percentage points.

Tronox Holdings has an average 1 year price target of $16.00, an upside of 34.23% from Tronox Holdings's current stock price of $11.92.

Tronox Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Tronox Holdings, 80% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 20% have issued a Sell rating, and 0% have issued a Strong Sell.

Chemical & Mining Co Of Chile (NYSE:SQM) is the second best chemical stock with a Zen Score of 60, which is 18 points higher than the chemical industry average of 42. It passed 23 out of 38 due diligence checks and has strong fundamentals. Chemical & Mining Co Of Chile has seen its stock lose -34.21% over the past year, underperforming other chemical stocks by -17 percentage points.

Chemical & Mining Co Of Chile has an average 1 year price target of $88.92, an upside of 30.17% from Chemical & Mining Co Of Chile's current stock price of $68.31.

Chemical & Mining Co Of Chile stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Chemical & Mining Co Of Chile, 40% have issued a Strong Buy rating, 20% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 20% have issued a Strong Sell.

Huntsman (NYSE:HUN) is the third best chemical stock with a Zen Score of 60, which is 18 points higher than the chemical industry average of 42. It passed 21 out of 38 due diligence checks and has strong fundamentals. Huntsman has seen its stock lose -29.97% over the past year, underperforming other chemical stocks by -12 percentage points.

Huntsman has an average 1 year price target of $29.11, an upside of 13.58% from Huntsman's current stock price of $25.63.

Huntsman stock has a consensus Hold recommendation according to Wall Street analysts. Of the 9 analysts covering Huntsman, 11.11% have issued a Strong Buy rating, 11.11% have issued a Buy, 55.56% have issued a hold, while 11.11% have issued a Sell rating, and 11.11% have issued a Strong Sell.

Out of 15 chemical stocks that have issued dividends in the past year, the 3 chemical stocks with the highest dividend yields are:

Chemical & Mining Co Of Chile (NYSE:SQM) has an annual dividend yield of 11.94%, which is 8 percentage points higher than the chemical industry average of 3.59%. Chemical & Mining Co Of Chile's dividend payout is not stable, having dropped more than 10% fourteen times in the last 10 years. Chemical & Mining Co Of Chile's dividend has shown consistent growth over the last 10 years.

Chemical & Mining Co Of Chile's dividend payout ratio of 57.1% indicates that its high dividend yield is sustainable for the long-term.

Westlake Chemical Partners (NYSE:WLKP) has an annual dividend yield of 8.56%, which is 5 percentage points higher than the chemical industry average of 3.59%. Westlake Chemical Partners's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Westlake Chemical Partners's dividend has shown consistent growth over the last 10 years.

Westlake Chemical Partners's dividend payout ratio of 106% indicates that its high dividend yield might not be sustainable for the long-term.

Tronox Holdings (NYSE:TROX) has an annual dividend yield of 5.24%, which is 2 percentage points higher than the chemical industry average of 3.59%. 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 15.4% indicates that its high dividend yield is sustainable for the long-term.

Chemical stocks were up 4.67% in the last day, and up 3.21% over the last week. Tronox Holdings was the among the top gainers in the chemicals industry, gaining 8.56% yesterday.

Shares of chemical companies are trading higher amid overall market strength on renewed economic optimism following US Senate passage of a debt limit bill and strong US jobs data.

Based on WallStreetZen's Valuation Score, the 3 most undervalued chemical stocks right now are:

Dow (NYSE:DOW) is the most undervalued chemical stock based on WallStreetZen's Valuation Score. Dow has a valuation score of 71, which is 27 points higher than the chemical industry average of 44. It passed 5 out of 7 valuation due diligence checks.

Dow's stock has dropped -24.21% in the past year. It has underperformed other stocks in the chemical industry by -7 percentage points.

Huntsman (NYSE:HUN) is the second most undervalued chemical stock based on WallStreetZen's Valuation Score. Huntsman has a valuation score of 71, which is 27 points higher than the chemical industry average of 44. It passed 5 out of 7 valuation due diligence checks.

Huntsman's stock has dropped -29.97% in the past year. It has underperformed other stocks in the chemical industry by -12 percentage points.

Methanex (NASDAQ:MEOH) is the third most undervalued chemical stock based on WallStreetZen's Valuation Score. Methanex has a valuation score of 71, which is 27 points higher than the chemical industry average of 44. It passed 5 out of 7 valuation due diligence checks.

Methanex's stock has dropped -15.53% in the past year. It has overperformed other stocks in the chemical industry by 2 percentage points.