10 Best Plastics and Rubber Stocks to Buy According to Analysts

7. LyondellBasell Industries NV (NYSE:LYB)

Upside Potential as of January 13: 26.11%

One of the Best Plastics Stocks, LyondellBasell Industries NV (NYSE:LYB), a multinational chemicals firm based in the Netherlands, is the largest licensor of technologies for producing polypropylene and polyethylene, two essential building blocks used in the production of plastic products. The petrochemical manufacturer has facilities in Asia, Europe, and the United States. North American operations account for well over half of LyondellBasell’s output.

LyondellBasell Industries NV (NYSE:LYB) is a cash-generating powerhouse that has a track record of paying dividends to stockholders. The business may become entangled in the cyclical demand for chemicals, which tends to decline during uncertain economic times. Nevertheless, this is a diverse company that should be able to expand in response to rising demand globally.

LyondellBasell Industries NV (NYSE:LYB) outperformed its top-quartile rivals in the industry with a total recordable incident rate of 0.13 in Q3 2024, displaying good safety performance. Strong growth was achieved by the Olefins and Polyolefins-Americas segment, which experienced a 13% sequential EBITDA improvement to $758 million, its highest quarter since Q2 2022 and a 50% year-over-year gain.

The MoReTec-1 facility in Wesseling, Germany, is projected to be operational by 2026 after construction has begun due to a €40 million grant from the EU Innovation Fund. Over the previous 12 months, the company recorded $670 million in cash from operations and a 77% EBITDA-to-cash conversion rate. Advanced Polymer Solutions’ EBITDA has increased by more than 20% so far this year, primarily due to the packaging sector’s strong demand.

The average 12-month price objective for LyondellBasell Industries NV (NYSE:LYB) shares, as estimated by the 13 analysts, is $94.97; the low and high estimates are $85 and $105, respectively. The current stock price of $75.31 is expected to rise by 26.11%, according to the average goal.

Cliff Asness’ AQR Capital Management was the largest stakeholder in the firm among the funds in Insider Monkey’s database. It owns 864,370 shares worth $82.89 million as of Q3.