12 Best Basic Materials Stocks to Buy According to Analysts

4) Celanese Corporation (NYSE:CE)

Average Upside Potential: 44.01%

Number of Hedge Fund Holders: 15

Celanese Corporation (NYSE:CE) is a chemical and specialty materials company engaged in manufacturing and selling high-performance engineered polymers. Deutsche Bank analysts maintained a “Buy” rating on the company’s shares, providing a price objective of $85.00.  The analysts remain optimistic about the company’s operating leverage, mainly as markets in the automotive, industrial, and construction sectors are well-positioned for a recovery. Celanese Corporation (NYSE:CE)’s focus remains on driving business improvement via earnings growth, cost reductions, FCF expansion, and deleveraging to position itself for long-term shareholder value creation.

A recovery in industrial markets, mainly in the automotive and construction sectors, is expected to offer a significant upside for Celanese Corporation (NYSE:CE). As a rebound in the demand occurs, its high-margin acetyls and engineered materials segments can capitalize on increased volumes and better pricing power. Also, this recovery can fuel faster-than-expected earnings growth. The growth in sectors such as automotive, electronics, and medical continues to fuel demand for engineered materials. Celanese Corporation (NYSE:CE) produces specialty polymers for a range of industries such as automotive and energy.

Furthermore, the acetyl chain segment benefits from improvements in industrial and construction activity. Overall, Celanese Corporation (NYSE:CE) remains well-placed to gain from increased demand, pricing power, and sustainability trends.