12 Best Basic Materials Stocks to Buy According to Analysts

8) The Chemours Company (NYSE:CC)

Average Upside Potential: 36.9%

Number of Hedge Fund Holders: 29

The Chemours Company (NYSE:CC) is a global provider of chemicals. The company delivers customized solutions with a wide range of industrial and specialty chemicals products for numerous markets. Truist initiated coverage of the company’s stock with a “Buy” rating, and a price objective of $27. As per the firm, The Chemours Company (NYSE:CC) is well-placed for strong earnings growth in 2025 and 2026, courtesy of continued growth at accretive margins for the company’s next-gen refrigerant Opteon franchise.

Furthermore, Truist expects an upside to the company’s current valuation, with the new management team implementing the plans to optimize The Chemours Company (NYSE:CC)’s cost structure and target growth in higher-value product applications. The company remains focused on numerous strategic initiatives to enhance its competitive position and fuel growth. As a result, its key focus has been on cost reduction, with The Chemours Company (NYSE:CC) expecting to achieve incremental run-rate cost savings of more than $250 million throughout the company from 2024 through 2027.

This will consist of a continuation of successful cost reductions via the TT (Titanium Technologies) Transformation Plan, adding an incremental $100 million in expected cost savings, plus $150 million in targeted cost savings throughout other businesses and corporate costs. The Chemours Company (NYSE:CC) plans to apply a programmatic approach to achieve the targets, using its manufacturing capabilities, standardized operating model, and continuous improvement to adapt to ever-changing markets. Buckley Capital Advisors, an investment management company, released a Q3 2024 investor letter. Here is what the fund said:

The Chemours Company (NYSE:CC) is an investment we have owned since 2018, very profitably until this year. It is composed of 3 different businesses – TSS, APM, and TT – that are each the #1 or #2 players in their respective categories.

The company’s Thermal & Specialized Solutions division (TSS) sells environmentally friendly refrigerants on a global basis, with the primary refrigerants being Opteon and Freon. Opteon is more environmentally friendly, therefore Freon is being slowly phased out by government mandate. This is very beneficial for Chemours since Opteon is very high-margin and has little competition, whereas Freon has more competitors and overall lower margins. This should lead to high single-digit growth in the TSS segment, with 30%+ EBITDA margins. We believe it is possible TSS margins could get to 40%, given that they have neared that number in the past and that as Chemours sells more Opteon, its margins should trend higher. This means TSS should be able to earn around $800m in EBITDA in the next 2 years…” (Click here to read the full text)