11 Best Materials Stocks to Buy According to Hedge Funds

8. DuPont de Nemours, Inc. (NYSE:DD)

Number of Hedge Fund Holders: 58

DuPont de Nemours, Inc. (NYSE:DD) is a diversified worldwide specialty chemicals firm founded in 2019 as a result of the DowDuPont merger and subsequent separations. Its range comprises downstream goods and specialty chemicals that cater to the water, construction, electronics, safety and protection, automotive, and healthcare sectors. By the end of 2025, the firm intends to separate its electronics division.

The company’s revenue rose by 7% in the fourth quarter of 2024, while operational EBITDA grew by 13% year over year to $807 million. Adjusted EPS increased 30% over the previous year, while the operating EBITDA margin increased 140 basis points. The demand for semiconductors and applications of AI technology drove double-digit organic sales growth in the Electronics and Industrial Solutions division. E&I had a 10% rise in organic revenue and a 21% increase in operational EBITDA. DuPont de Nemours, Inc. (NYSE:DD)’s sales of AI-related products surged 30%, generating over $300 million and making it one of the best materials stocks.

Nonetheless, BMO Capital maintained its Outperform rating on its shares and increased DuPont de Nemours, Inc. (NYSE:DD)’s price objective from $112 to $116. In a research note, the analyst informs investors that the stock is one of the more appealing prospects in the chemical industry, delivering strong value unlock over the next six to twelve months. According to the company, gains are anticipated from exposure to end markets that are stable or improving, as well as from its upcoming separation into ElectronicsCo and New DuPont.