As chemical companies are treading carefully with a shift toward sustainable product portfolios and accelerating product innovation cycles, it could be an opportune time to buy quality chemical stocks, NewMarket Corporation (NEU), Fuchs SE (FUPBY), and Oil-Dri Corporation of America (ODC), trading at discounted valuations.
The red-hot chemical industry enjoys strong demand from various sectors such as automotive, agriculture, healthcare, construction, and electronics, yielding high-profit margins. The global chemicals market grew from $4.70 trillion in 2022 to $5.08 trillion in 2023 at a CAGR of 8.1%. Further, the market is expected to reach $6.85 trillion in 2027, growing at a CAGR of 7.8%.
