12 Best Chemical Stocks to Buy According to Analysts

3) Dow Inc. (NYSE:DOW)

Average Upside Potential: 42.6%

Number of Hedge Fund Holders: 31

Dow Inc. (NYSE:DOW) is engaged in the provision of various materials science solutions for packaging, infrastructure, mobility, and consumer applications. The company focuses on $500 million – $700 million in direct cost cuts, mainly from purchased services and third-party contract labor. Amidst the challenging environment, Dow Inc. (NYSE:DOW) is expected to benefit from the completion of its near-term incremental growth projects and an improved focus on operational discipline in 2025. Furthermore, the company remains optimistic about demand growth in certain end markets, including packaging, energy, and electronics.

Overall, the company is targeting to deliver $1 billion in cost savings. These reductions came in response to ongoing macroeconomic uncertainty and will reinforce its long-term competitiveness across the economic cycle. Dow Inc. (NYSE:DOW) continues to leverage its cost-advantaged footprint in a bid to capture resilient demand for high-value applications. In December, it signed a definitive agreement for the sale of a minority stake in select US Gulf Coast infrastructure assets for anticipated cash proceeds of up to ~$3 billion.

Dow Inc. (NYSE:DOW) believes that the partnership offers a new business model focused on driving operational efficiencies and growth with new customers while offering near-term financial flexibility. The company also announced a strategic review of select European assets. All these collective actions showcase a continuation of Dow Inc. (NYSE:DOW)’s commitment to maintaining its strong financial foundation and supplementing the near-term cash flow.