In this article, we discuss the 5 best plastics stocks to buy now. If you want to see more stocks in this selection, check out the 11 Best Plastics Stocks To Buy Now.
5. Myers Industries, Inc. (NYSE:MYE)
Number of Hedge Fund Holders: 9
Myers Industries, Inc. (NYSE:MYE) is an Akron, Ohio-based diversified plastics and rubber company.
Myers Industries, Inc. (NYSE:MYE) develops reusable plastic bins, containers, pallets, and other products in the plastic value chain. The reusable containers produced by the company can be recycled and reprocessed into new products. These activities fall in the category of the material handling segment, which is responsible for contributing nearly 75% to the top line and 80% to the bottom line of the company. Myers Industries, Inc. (NYSE:MYE) saw its material handling segment’s revenue increase by 64% YoY in FY21, while the distribution segment revenue observed an increase of 18.5% YoY. The company’s growth trajectory persisted in 2022 as well, with the overall revenue for Q1 rising by 29.3% from the same period last year.
Myers Industries, Inc. (NYSE:MYE) offers an attractive forward dividend yield of 3.10% as of October 21. Despite a decline of 23% experienced by the S&P 500 Index since the start of the year, the share price of Myers Industries, Inc. (NYSE:MYE) has observed a fall of only 13%. This reflects the defensive nature of the stock.
Mario Gabelli’s GAMCO Investors is the biggest hedge fund investor in Myers Industries, Inc. (NYSE:MYE), with over 3.22 million shares as of Q2 2022.
4. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 72
Exxon Mobil Corporation (NYSE:XOM) is a Texas-based integrated energy giant with significant exposure to the plastics industry.
The company is a producer of plastic products for the agricultural, building and construction, healthcare, and packaging industries. Three top-notch technological centers are operated by Exxon Mobil Corporation (NYSE:XOM) in Texas, Belgium, and China, where employees develop plastics, polymers, and related products.
Utilizing its ExxtendTM technology for the high-tech recycling of plastic waste, Exxon Mobil Corporation (NYSE:XOM) executed its first sale of certified circular polymers to Berry Global in February. Berry Global is a well-known supplier of cutting-edge packaging products and plans to employ circular polymers to mass-produce containers for food-grade packaging.
On October 18, Lloyd Byrne at Jefferies upgraded Exxon Mobil Corporation (NYSE:XOM) from a Hold to a Buy rating and increased the target price from $90 to $133. The analyst sees higher commodity prices to aid the company in generating healthy cash flows.
Here’s what First Eagle Investments said about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2022 investor letter:
“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
3. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 20
Amcor plc (NYSE:AMCR) is a Victoria, Australia-based packaging company that provides diversified packaging solutions.
On October 13, Amcor plc (NYSE:AMCR) received a double upgrade from an Underperform to a Buy rating by George Staphos at Bank of America. The analyst also gave the producer of plastic bottles and jars a target price of $13, which reflects a potential upside of 19.4% from the closing price as of October 21.
The management of Amcor plc (NYSE:AMCR) anticipates EPS to grow by 3% to 8% in 2023 and intends to buy back $400 million worth of stock. The company has already purchased $600 million worth of stock in 2022. Amcor plc (NYSE:AMCR) stock is a defensive option that provides quality and avoids pricing risk, making it one of the best plastics stocks to invest in.
Renaissance Technologies increased its stake in Amcor plc (NYSE:AMCR) by 337% during Q2 2022.
2. Trinseo PLC (NYSE:TSE)
Number of Hedge Fund Holders: 12
Trinseo PLC (NYSE:TSE) is a Berwyn, Pennsylvania-based plastics manufacturer that was spun off from Dow Chemical in 2009 before its merger with DuPont. The company is at the second position on our list of the 11 best plastics stocks to buy now.
On September 6, Trinseo PLC (NYSE:TSE) initiated a new share buyback plan of $200 million. Trinseo PLC’s (NYSE:TSE) CEO shared that the firm’s portfolio transformation has allowed it to increase its shareholder value generation capabilities. On September 22, the company also declared a quarterly dividend of $0.32 per share, translating into an annual forward dividend yield of 7.21% as of October 21.
Experts anticipate Trinseo PLC (NYSE:TSE) to experience solid growth in the coming years as the demand for industrial product manufacturers is growing. In the most recent SEC filing, M&G Investment Management also revealed increasing its stake in Trinseo PLC (NYSE:TSE) to 21.8%. The investment firm shared that it was bullish on Trinseo PLC’s (NYSE:TSE) growth prospects due to the new strategic direction taken by the company.
1. Carlisle Companies (NYSE:CSL)
Number of Hedge Fund Holders: 30
Carlisle Companies (NYSE:CSL) is a Scottsdale, Arizona-based diversified company involved in the production of dip molding plastics. The company primarily manufactures specialized rubber and plastic products with an emphasis on the construction industry.
On October 14, Daniel Oppenheim at Credit Suisse upgraded Carlisle Companies (NYSE:CSL) stock from a Neutral to an Outperform rating with a target price of $363. The analyst anticipates the company to benefit from the secular trend that is focused on building greater efficiency. Due to the strong demand for its commercial offerings, Oppenheim believes that Carlisle Companies (NYSE:CSL) can experience healthy growth during recessionary periods, which makes it one of the best plastics stocks to hold in the long run. The stock also offers an annual forward dividend yield of 1.01% as of October 21.
Here’s what Polen Capital said about Carlisle Companies (NYSE:CSL) in its Q2 2022 investor letter:
“CSL’s recent update indicated that the worst COVID-19 impacts on the business are likely past, with plasma collections now snapping back. CSL’s core business continues to enjoy significant competitive advantages, in our view, and, as collected plasma is processed into finished products, we believe sales will return to their pre-COVID-19 levels. It will take time for this to play out, but it is a welcome improvement. Most of the other segments of the business are performing well, and steady demand for CSL’s products, which are less economically sensitive, has likely contributed to the stability of shares recently.”
You can also take a peek at the 12 Best Emerging Stocks To Buy Now and the 15 Best Single Digit Stocks To Invest In.
