12 Best Chemical Stocks to Buy According to Analysts

2) Tronox Holdings plc (NYSE:TROX)

Average Upside Potential: 55.4%

Number of Hedge Fund Holders: 24

Tronox Holdings plc (NYSE:TROX) operates titanium-bearing mineral sand mines and beneficiation operations in Australia and South Africa. Truist Securities initiated coverage on the company’s shares, assigning a “Buy” rating and a price objective of $17.00. The analyst noted Tronox Holdings plc (NYSE:TROX)’s strong competitive position in the TiO₂ industry, courtesy of its scale and high degree of vertical integration. Notably, such factors were highlighted as the critical drivers of the company’s relatively resilient margins, primarily during the recent market downturns.

The analyst from the firm remains optimistic about the TiO₂ market’s improving fundamentals. Furthermore, the potential implementation of anti-dumping duties aimed at Chinese exports can bolster Tronox Holdings plc (NYSE:TROX)’s market position. Such duties might restrict competition from China, leading to above-market volume growth for the company, says the analyst. As the TiO₂ market has been strengthening, Tronox Holdings plc (NYSE:TROX) is expected to be well-positioned to capitalize on the momentum.

Truist Securities expects that its operating rates will improve, which is expected to aid significant earnings upside for the company. Aristotle Capital Boston, LLC, an investment advisor, released its Q4 2024 investor letter. Here is what the fund said:

“Tronox Holdings plc (NYSE:TROX), a leading global manufacturer of titanium dioxide pigment, a key ingredient in paint, plastics and a variety of other industrial applications, was added to the portfolio. Expectations for a cyclical recovery in demand combined with a changing competitive backdrop plus the benefit of cost savings initiatives should allow TROX to produce improved financial performance over the next several years.”