10 Undervalued Chemical Stocks to Invest In

6. Minerals Technologies Inc. (NYSE:MTX)

Forward P/E: 10.95

Earnings Growth: 17.10%

Number of Hedge Fund Holders: 24

Minerals Technologies Inc. (NYSE:MTX) is a leading specialty chemicals and minerals company that develops, produces, and markets a wide range of mineral-based products and related systems. The company serves various industries, including household goods, food and pharmaceuticals, paper, packaging, automotive, construction, and environmental sectors. With expertise in inorganic chemistry and crystallography, Minerals Technologies Inc. (NYSE:MTX) produces value-added products that enhance the functionality of consumer and industrial goods.

In the third quarter of 2024, the company reported earnings per share of $1.45, or $1.51 excluding special items, marking a record for the company in this quarter. Total net sales reached $525 million, a slight decline of 4% from the previous year. However, the reported operating income was $77 million, with an adjusted operating income of $79 million, reflecting a 3% increase year-over-year. This demonstrates Minerals Technologies Inc.’s (NYSE:MTX) effective margin expansion strategy.

On October 22, 2024, the company announced an expanded partnership with AIM Intelligent Machines Inc., focusing on AI-enabled solutions for mining equipment. This collaboration aims to enhance safety and productivity in mining operations by retrofitting existing equipment with advanced technology. Such innovations position Minerals Technologies Inc. (NYSE:MTX) to leverage cutting-edge technology in complex environments, unlocking greater efficiency and value.

With a strong focus on research and development and strategic partnerships aimed at enhancing operational capabilities, Minerals Technologies Inc. (NYSE:MTX) presents a compelling investment opportunity.

Analysts are also bullish on MTX. The 12-month median price target of $99.50 set by analysts indicates a potential upside of 30% from the current stock price.