5 Best Chemical Stocks to Buy For 2021

2. Exxon Mobil Corporation (NYSE: XOM)

ExxonMobil Chemical Company is a chemicals division of the oil giant Exxon. The company makes a diverse range of chemical products that are used in packaging materials, plastics, cars, rubbers, and many other consumer goods. ExxonMobil’s chemicals business is currently under pressure amid trade tensions with China and a global supply glut. The company has a 9% share in the global production capacity of polyethylene but the segment is facing declines amid overproduction. However, with a giant like Exxon on its back, the division is expected to overcome the temporary difficulties in 2021. Goldman Sachs recently upped its price target for Exxon to Buy from Neutral, and also increased its price target to $52 from $42.

Out of the 816 elite hedge funds tracked by Insider Monkey, 52 ended the third quarter with positions in ExxonMobil. The total worth of these stakes is $1.38 billion. Here is what First Eagle said about XOM in its 2020 Q3 investor letter:

“The stock of Exxon Mobil continued to struggle in the third quarter, and it lost roughly half its market cap year to date. Despite this, we believed Exxon Mobil was well-equipped to contend with lower prices and remained a compelling investment. The company demonstrated high levels of operational flexibility during the difficult market environment and maintained an upward drift in earnings power. Its high-quality, long-duration assets occupy attractive positions on the cost curve.”