10 Best Specialty Chemical Stocks To Buy Now

3. Quaker Chemical Corporation (NYSE:KWR)

Upside Potential: 36.13%

Number of Hedge Funds Holders: 25

Quaker Chemical Corporation (NYSE:KWR) manufactures industrial fluids for steel, aluminum, and several other global companies. It produces specialty chemicals and provides management services for industrial and manufacturing applications.

The company registered a revenue of $463.6 million in the second quarter of 2024, which fell from $495.4 million in the same quarter of the last year. This was due to a decrease in selling price and sales volume, latter of which fell by 1%. Moreover, the revenue fell because of the weaker market conditions in the EMEA region, which was slightly offset by an improvement in the performance of the Asia/Pacific segment.

However, the company’s EBITDA of $84.3 million in the quarter was a 5% improvement compared to the revenue of the same quarter of the previous year. This was due to improved gross margins for all segments of the company.

Thus, the company translated these improved earnings on to shareholders, with the announcement of a $0.485 dividend, which was 7% higher than the previous dividend paid. This also marked the 15^th consecutive annual dividend, reflecting the long-term stability of the company’s operations. In July 2024, it also announced the breaking ground of its new manufacturing facility in China which would increase the production capacity to support the growth of customers, particularly in the Asia-Pacific region, where the operating earnings increased in the second quarter of 2024.

Along with that, Quaker Chemical Corporation (NYSE:KWR) reported net operational cash flows of $73.5 million, which is a testament to the strong financial performance of the company. In light of these remarkable feats achieved by the company, the share price can show an increase of 36.13% from the current price, according to analysts.