11 Undervalued Chemical Stocks to Buy Now

8. Cabot Corporation (NYSE:CBT)

Forward P/E: 10.89

Number of Hedge Fund Holders: 35

Cabot Corporation (NYSE:CBT) is an American multinational specialty chemicals and performance materials company that provides a wide range of products and solutions, including reinforcing carbons, specialty carbons, battery materials, engineered elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed metal oxides, and aerogel. The company serves key industries like transportation, infrastructure, environment, and consumer. Cabot Corporation (NYSE:CBT) ranks among the best chemical stocks to invest in.

Over the past three years, the company has achieved significant milestones as part of its “Creating for Tomorrow” strategy, originally introduced at the Company’s 2021 Investor Day. Cabot Corporation (NYSE:CBT) achieved its ambitious 3-year corporate targets and delivered the top end of its Adjusted EPS CAGR target range of 8-12% and surpassed its 3-year cumulative Discretionary Free Cash Flow Generation (DFCF) target of over $1 billion, with $1.2 billion of DFCF over the 3-year period. In December 2024, Cabot Corporation (NYSE:CBT) announced its new financial targets for the next 3 years. These include an adjusted EPS CAGR of 7-10% from fiscal 2024 through fiscal 2027 and an adjusted EBITDA of $0.9-$1.0 billion by fiscal year 2027. The company continues to execute its strategy and invest in high-growth vectors, such as battery materials with new capacity to meet growth in customer demand. Cabot Corporation (NYSE:CBT) is also advancing its core business segments, Reinforcement Materials and Performance Chemicals, through innovation and strategic growth investments.