10 Undervalued Chemical Stocks to Invest In

4. Celanese Corporation (NYSE:CE)

Forward P/E: 9.98

Earnings Growth: 15.20%

Number of Hedge Fund Holders: 29

Celanese Corporation (NYSE:CE) is a chemical and specialty materials company that ranks among the best chemical stocks to buy. It is known for engineering and manufacturing a wide range of specialty materials and chemical products used across major industries, including automotive, consumer goods, and construction. Celanese is one of the largest producers of acetyl products, which serve as key intermediates in many applications.

The company leverages its extensive Acetyl Chain production network to supply essential materials for the chemicals and paints and coatings industries. Celanese’s diverse portfolio of Materials Solutions supports advancements in automotive design, consumer electronics, and life-enhancing products in the medical and food sectors. With manufacturing facilities located in North America, Europe, and Asia, Celanese Corporation (NYSE:CE) is well-positioned to meet the diverse needs of its customers.

In the second quarter of 2024, the corporation reported strong financial results, achieving diluted earnings per share of $1.42 and adjusted earnings per share of $2.38. Celanese Corporation (NYSE:CE) generated net sales of $2.7 billion, marking a 2% increase from the previous quarter, driven by a 4% rise in sales volume despite a 2% decline in pricing. Operating profit reached $250 million in Q2 2024, with adjusted EBIT at $451 million, reflecting effective execution of its strategic action plan amidst external challenges such as supplier outages.

Celanese Corporation (NYSE:CE) is focusing on enhancing operational efficiency and driving volume growth through its project pipeline model. The company is integrating its Mobility & Materials businesses into a unified SAP ERP system to improve business efficiency.

With a solid track record of growth, Celanese Corporation (NYSE:CE) stands out as a compelling investment opportunity in the chemical sector. Over the past 5 years, Celanese Corporation (NYSE:CE) has grown its top line at a compound annual growth rate (CAGR) of 9.39%, while its bottom line has increased at a CAGR of 12.97% during the same period.

As of the second quarter of 2024, CE was held by 29 hedge funds, according to Insider Monkey’s database. This brings Celanese Corporation (NYSE:CE) to the 4th spot on our list of the 10 undervalued chemical stocks to invest in.