12 Best Chemical Stocks to Buy According to Analysts

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10) AdvanSix Inc. (NYSE:ASIX)

Average Upside Potential: 20.8%

Number of Hedge Fund Holders: 14

AdvanSix Inc. (NYSE:ASIX) is engaged in the manufacturing and selling of polymer resins in the US and internationally. Given the improvement in nylon demand fundamentals and strong financial health, the company offers a healthy investment case. AdvanSix Inc. (NYSE:ASIX) continues to benefit from the differentiated product portfolio, its exposure to diverse end markets, and positive demand and pricing. In Q3 2024, the company capitalized on the strength of its competitive position as it saw the continued realization of commercial performance throughout its diverse product portfolio and strong operational execution.

AdvanSix Inc. (NYSE:ASIX) continues to benefit from a constructive global acetone supply and demand environment and modest improvement in North American nylon industry conditions. In Q3 2024, the company’s sales increased ~23% versus the prior year, thanks to ~11% growth in volume, 8% higher raw material pass-through pricing, and 5% favorable impact of market-based pricing. AdvanSix Inc. (NYSE:ASIX) was awarded a ~$12 million grant from the US Department of Agriculture, focused on increasing its production capacity of premium-grade products. This reinforced a strong return profile for the company’s SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program.

Amidst continued strong sulfur nutrition demand, the Ammonium sulfate order book remains sold through 4Q 2024 and AdvanSix Inc. (NYSE:ASIX) expects balanced-to-tight global acetone supply and demand conditions. Furthermore, North American nylon industry spreads are expected to modestly improve amid stable end-market demand.

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