12 Best Chemical Stocks to Buy According to Analysts

6) Huntsman Corporation (NYSE:HUN)

Average Upside Potential: 31.7%

Number of Hedge Fund Holders: 31

Huntsman Corporation (NYSE:HUN) is engaged in manufacturing and selling diversified organic chemical products. The company is anticipated to benefit as a result of investment in downstream businesses, product innovation, acquisitions as well as cost actions as it continues to face challenges related to soft demand in certain markets and pricing pressure. Huntsman Corporation (NYSE:HUN) is focused on growing its downstream specialty and formulation businesses. Furthermore, the company continues to pivot its MDI (methylene diphenyl disocyanate) business from components to differentiated systems which generally have higher margins and lower volatility.

Over the medium to long term, interest rate cuts by the Fed and ECB, together with government stimulus in China, are expected to have a positive impact across the global portfolio, mainly in construction. Huntsman Corporation (NYSE:HUN) further added that it remains focused on improving its cost position and balance sheet strength in a bid to maintain optionality to invest in the core businesses in a disciplined manner. The company expressed optimism about its strong bond offering in Q3 2024, pointing to the long-term strength of the portfolio and expectation of market improvements moving forward.

Huntsman Corporation (NYSE:HUN) plans to capitalize on the growing EV battery opportunities and energy efficiency in home and building materials. The company expects that lower interest rates, announcements related to Asian stimulus, and increased political certainty in Europe and the U.S. would help improve broader market conditions.