In this article we will take a look at the 10 best plastics stocks to buy now. You can skip our detailed analysis of these companies, and go directly to the 5 Best Plastics Stocks to Buy Now.
Plastics have become a part of everyday life, whether we like it or not. While your average climate change activist will always be seen encouraging their friends and family to stop using those plastic bottles or stop buying products from that one company that uses plastics in everything it manufactures, no one can really do anything about it at this point. I don’t want to come across as pessimistic but it’s an incontrovertible truth at this point: plastics sell, and at good rates too. The only thing you and I, as responsible citizens, can reasonably do is try to reduce, reuse, and recycle as much plastic as we can. Sounds cliche, I know, but what better alternative do you have in mind?
The adverse effects of the production, sale, and use of plastics notwithstanding, you can’t deny that the industry itself is one of the most profitable in the world currently. In 2020, the global plastic market size was worth approximately $579.7 billion, and the value is expected to increase at a compound annual growth rate (CAGR) or 3.4% from 2021 to 2028.
You can’t tell me you’re surprised to hear that. Really, when you see what plastic can do, how it can be shaped to form anything from a cup to a toy castle, it becomes pretty evident that this one product would be highly popular and profitable in the world today. It’s not even just insignificant products like cups and straws anymore. If you look at the rise in the need for PPE kits ever since the advent of the coronavirus pandemic, you’ll see how the need for plastic as a product is ever-growing. Personal protective equipment, or PPE kits, have become a necessity for medical professionals and other frontline workers such as governmental officials. And what do you think these kits are made of, at the end of the day?
If your answer to the question above was ‘plastic,’ then congratulations, you were absolutely correct.
Up till last year, Trinseo S.A. (NYSE: TSE), Berry Global (NYSE: BERY), AptarGroup, Inc. (NYSE: ATR), and Myers Industries, Inc. (NYSE: MYE) were some of the most successful plastics stocks investors had their eyes on. Trinseo S.A. (NYSE: TSE) showed some volatility in the previous years, going from $15 in 2014 to over $80 in 2018, and later plummeting again. Michelin (OTCMKTS: MGDDY) also saw some tough times last year but was expected to bounce back because of its financial performance trumping that of US stocks like The Goodyear Tire & Rubber Company (NASDAQ: GT).
Apart from Berry Global (NYSE: BERY), AptarGroup (NYSE: ATR) and Myers Industries (NYSE: MYE), Exxon Mobil Corporation (NYSE: XOM) is also a major company operating in the plastics and chemicals industry. Exxon Mobil Corporation (NYSE: XOM) upped its monthly production of specialized polypropylene by 1000 tons in April of last year. This increase was born out of a need for masks and medical gowns in the aftermath of COVID-19.
But the plastics industry is experiencing a lot of changes, just like the financial industry. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Best Plastics Stocks to Buy Now
10. Amcor plc (NYSE: AMCR)
Number of Hedge Fund Holders: 17
With a market value of $18.606 billion as of the start of 2021, Amcor plc (NYSE: AMCR) is a company providing packaging solutions to its customers. The company’s headquarters are in Australia, and it is ranked 10th on the list of the best plastics stocks to buy now.
Amcor plc (NYSE: AMCR) has recently developed recyclable healthcare packaging, in line with its commitment to the climate action cause, and this breakthrough achievement has earned it a special reputation in the global plastics industry.
The company has also become more desirable for investors as Amcor plc (NYSE: AMCR) has seen financial improvements recently, with current quarter estimates increasing from 21 cents per share to 22 cents in the past month alone.
Like Berry Global (NYSE: BERY), AptarGroup (NYSE: ATR), Myers Industries (NYSE: MYE), Trinseo S.A. (NYSE: TSE) and Exxon Mobil Corporation (NYSE: XOM), Amcor plc (NYSE: AMCR) is one of the best plastics and chemicals stocks to buy now.
9. Nan Ya Plastics Corporation (TPE: 1303.TW)
Number of Hedge Fund Holders: N/A
Ranked 9th on our list of the best plastics stocks to buy now is Nan Ya Plastics Corporation (TPE: 1303.TW). The company manufactures and markets plastic products, chemicals, and other materials. Nan Ya Plastics Corporation (TPE: 1303.TW) is also known to be a leading name in the manufacture of polyester fibers and copper-clad laminates for electronic materials.
8. SABIC Agri-Nutrients Company (TADAWUL: 2020.SR)
Number of Hedge Fund Holders: N/A
A petrochemical company in the Kingdom of Saudi Arabia, SABIC Agri-Nutrients Company (2020.SR) is ranked 8th on our list of the best plastics stocks to buy now. Being one of the largest producers of chemicals worldwide, the company deserves a spot on this list. The company produces, converts, and manufactures fertilizers as well.
While SABIC Agri-Nutrients Company (2020.SR) is no Exxon Mobil Corporation (NYSE: XOM), it’s still a worthy stock to consider, coming from a financially lucrative region with good prospects and plentiful potential to look forward to for any new investor.
7. Formosa Plastics Corporation (TPE: 1301.TW)
Number of Hedge Fund Holders: N/A
Ranked 7th on our list of the 10 best plastics stocks to buy now is Formosa Plastics Corporation (TPE: 1301.TW). With a market value of $21.852 billion in January 2021, the company is one of the biggest producers of plastic resins and industrial chemicals.
In 2020, Formosa Plastics Corporation (TPE: 1301.TW) had over 2900 employees operated over 20 production units. The company is based in Taiwan. Like Berry Global (NYSE: BERY), AptarGroup (NYSE: ATR), Myers Industries (NYSE: MYE), Trinseo S.A. (NYSE: TSE), Amcor plc (NYSE: AMCR) and Exxon Mobil Corporation (NYSE: XOM), Formosa Plastics is one of the best plastics and chemicals stocks to buy now.
6. DuPont de Nemours, Inc. (NYSE: DD)
Number of Hedge Fund Holders: 49
With a market value of $52.2 billion in January of this year, DuPont de Nemours, Inc. (NYSE: DD) is ranked 6th on our list of the best plastics stocks to buy now. The company is based in the US. DuPont de Nemours, Inc. (NYSE: DD) is a chemicals company focusing on science and innovation to manufacture its products.
Rhizome Partners, in its Q1 2021 investor letter, mentioned DuPont de Nemours, Inc. (NYSE: DD). Here is what Rhizome Partners has to say about DuPont de Nemours, Inc. in its Q1 2021 letter:
“We have written extensively about the anticipated DuPont’s Reverse Morris Trust merger with International Flavors and Fragrances (IFF) in January of 2021. During the quarter, DuPont shares traded up significantly in anticipation of the deal. We tendered about 40% of our DuPont shares for IFF and received about half of the allocation due to pro-ration. Investors are finally starting to appreciate DuPont’s effort to cut costs, streamline operations, and spin off companies into pure-play companies that trade at higher multiples. We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as DuPont.”
Like Berry Global (NYSE: BERY), AptarGroup (NYSE: ATR), Myers Industries (NYSE: MYE), Trinseo S.A. (NYSE: TSE), Amcor plc (NYSE: AMCR) and Exxon Mobil Corporation (NYSE: XOM), DuPont de Nemours, Inc. (NYSE: DD) is one of the best plastics and chemicals stocks to buy now.
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Disclosure: None. 10 Best Plastics Stocks to Buy Now is originally published on Insider Monkey.
