11 Best Small Cap Chemical Stocks to Buy According to Hedge Funds

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5. Ecovyst Inc. (NYSE:ECVT)

Market Capitalization: $921.59 Million

Number of Hedge Fund Holders: 20

Ecovyst Inc. (NYSE:ECVT) is a chemicals company and a leading provider of advanced materials, specialty catalysts, sulfuric acid, and regeneration services. The company operates through two main segments: Ecoservices and Advanced Materials & Catalysts. Ecoservices focuses on sulfuric acid recycling for the North American refining industry and provides high-quality virgin sulfuric acid for various industrial and mining applications. Meanwhile, the Advanced Materials & Catalysts segment offers silica catalysts and specialty zeolites that support sustainable fuel production and emission control. Ecovyst Inc. (NYSE:ECVT) ranks among the best chemical stocks to buy.

In the third quarter of 2024, Ecovyst Inc. (NYSE:ECVT) reported sales of $179.2 million, an increase from $173.3 million in the same quarter last year. However, net income fell to $14.3 million from $16.6 million. The adjusted EBITDA was $59.8 million, reflecting a 12% decline year-over-year but maintaining a solid margin of 28.5%. Cash flows from operating activities showed significant improvement, totaling $106.4 million for the first nine months of 2024, compared to $73.4 million in the previous year.

Ecovyst Inc. (NYSE:ECVT) remains focused on operational excellence and expanding its industrial segment volumes. The company is optimistic about the long-term outlook for polyethylene catalysts, driven by ongoing capacity expansions at its Kansas City site, expected to be completed by the end of 2025.

The company is also focused on diversifying products through emerging technologies. On November 13, 2024, Ecovyst Inc. (NYSE:ECVT) launched its AlphaCat advanced silica products aimed at enhancing biocatalysis, further showcasing its commitment to innovation. With strong cash flow generation, strategic investments in growth areas, and a focus on sustainable solutions, Ecovyst Inc. (NYSE:ECVT) presents a compelling investment opportunity in the specialty chemicals sector.

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