11 Undervalued Chemical Stocks to Buy Now

7. Celanese Corporation (NYSE:CE)

Forward P/E: 9.19

Number of Hedge Fund Holders: 35

Celanese Corporation (NYSE:CE) is a global chemical and specialty materials company that ranks among the best chemical stocks to invest in. The company engineers and manufactures a wide variety of chemical products and specialty material solutions used across a wide range of industries including aerospace, automotive and transportation, building and construction, consumer goods, electronics, food and beverage, industrial and manufacturing, and personal care markets. Celanese Corporation (NYSE:CE) ranks among the top chemical stocks to buy.

On February 24, BofA Securities lowered its price target on Celanese Corporation (NYSE:CE) to $72 from $88 and maintained a “Buy” rating. This decision came after a series of disappointing earnings reports and forecasts from the company, which led analysts to lower their earnings expectations and price targets for Celanese Corporation (NYSE:CE). Despite this, BofA analysts remain optimistic about the company’s future and suggest that Q4 2024 and Q1 2025 could mark the lowest point in the company’s earnings. The analysts expect EBITDA to improve after this period, although it is expected to stay below the levels seen in 2023-24. BofA’s analysis suggests that while margins for China’s acetyl products could stay low, they are not expected to further fall. The global construction industry is facing difficulties but analysts believe it is more likely to grow than further decline. Auto production is projected to stay steady with potential for growth in the coming years, especially in the US. Celanese Corporation (NYSE:CE) is also taking steps to expand into the electric vehicle (EV) market. Additionally, the company has implemented cost-saving measures that have been effective. BofA expects Celanese Corporation (NYSE:CE) to announce additional measures soon.