12 Best Chemical Stocks to Buy According to Analysts

9) PPG Industries, Inc. (NYSE:PPG)

Average Upside Potential: 22.2%

Number of Hedge Fund Holders: 32

PPG Industries, Inc. (NYSE:PPG) is a chemical company engaged in manufacturing and distributing paints, coatings, optical products, and specialty materials. The company’s strong position in the aerospace sector is expected to act as a growth enabler. Since the global aviation industry continues to recover from the pandemic-induced slowdown, the company is expected to benefit from increased demand for aerospace coatings and materials. The advancements in high-performance coatings, specialty polymers, and sustainable materials allow PPG Industries, Inc. (NYSE:PPG) to establish next-generation products for aerospace, automotive, and industrial applications.

Furthermore, the growth in construction, automotive, and industrial manufacturing, which tend to significantly depend on specialty chemicals, can equate to increased demand for PPG Industries, Inc. (NYSE:PPG)’s coatings and protective solutions. With the scaling of chemical production, manufacturing plants, storage tanks, and industrial equipment need protective coatings to prevent corrosion. Also, PPG Industries, Inc. (NYSE:PPG)’s growth in packaging and refinish sectors provides opportunities for expansion and higher market share.

With the rebound in demand for air travel, airlines might need to increase their fleets, fueling demand for aerospace coatings.  PPG Industries, Inc. (NYSE:PPG)’s innovations in aerospace coatings, like those that improve fuel efficiency or durability, might give a competitive edge and fuel adoption among aircraft manufacturers.