10 Undervalued Chemical Stocks to Invest In

2. PPG Industries Inc. (NYSE:PPG)

Forward P/E: 14.45

Earnings Growth: 6.40%

Number of Hedge Fund Holders: 42

PPG Industries Inc. (NYSE:PPG) is an American chemical company that ranks among the best chemical stocks to buy. It is known for its expertise in paints, coatings, and specialty materials. The company operates in over 70 countries, serving diverse markets such as construction, consumer products, industrial applications, and transportation.

In the third quarter of 2024, PPG Industries Inc. (NYSE:PPG) achieved record earnings per diluted share (EPS) of $2.00, with adjusted EPS reaching $2.13. The third quarter marked the seventh straight quarter of growth in adjusted EPS for the company. The company reported positive volume growth across seven of its ten business segments. Net sales totaled $4.6 billion.

The company is focused on enhancing shareholder value. It repurchased approximately $200 million of stock during Q3 2024 and a total of about $500 million year-to-date. In July, PPG Industries Inc. (NYSE:PPG) increased its quarterly dividend by 5%, distributing around $160 million in dividends for the quarter and approximately $465 million year-to-date.

PPG Industries Inc.’s (NYSE:PPG) ongoing strategic initiatives include the planned closure of its silicas products business and its architectural coatings segment in the US and Canada. These two divestitures are part of the company’s enterprise growth strategy, allowing it to focus on areas with the highest growth potential and margins. By optimizing its portfolio, PPG aims to channel resources into segments where it has a competitive advantage.

With a commitment to returning value to shareholders and a clear strategy for growth, PPG Industries Inc. (NYSE:PPG) represents a solid investment opportunity in the chemical sector. As of the second quarter of 2024, the stock is held by 42 hedge funds. It ranks second on our list of undervalued chemical stocks to invest in.