5 Best Rubber and Plastics Stocks To Buy

In this article, we discuss 5 best rubber and plastics stocks to buy. If you want to read our detailed discussion on the rubber and plastics industry, head directly to 10 Best Rubber and Plastics Stocks to Buy. 

5. Westlake Corporation (NYSE:WLK)

Number of Hedge Fund Holders: 28

Westlake Corporation (NYSE:WLK) is a Texas-based company that manufactures and markets performance and essential materials. The company produces semi-finished thermoplastic products, petrochemicals, polymers, and fabricated building products. It is one of the best rubber and plastic stocks to invest in. On May 4, Westlake Corporation (NYSE:WLK) reported a Q1 GAAP EPS of $3.05, beating market consensus by $0.99. The revenue of $3.36 billion, however, fell short of Wall Street estimates by $50 million. The company also paid a $0.357 per share quarterly dividend to shareholders on June 7. 

According to Insider Monkey’s first quarter database, 28 hedge funds were bullish on Westlake Corporation (NYSE:WLK), compared to 27 funds in the last quarter. William B. Gray’s Orbis Investment Management is the largest stakeholder of the company, with 2 million shares worth $239 million. 

4. LyondellBasell Industries N.V. (NYSE:LYB)

Number of Hedge Fund Holders: 35

LyondellBasell Industries N.V. (NYSE:LYB) is a multinational chemical company that manufactures polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders, and advanced polymers, among others. It is one of the best rubber and plastics stocks to watch. On May 19, LyondellBasell Industries N.V. (NYSE:LYB) declared a $1.25 per share quarterly dividend, a 5% increase from its prior dividend of $1.19. The dividend was distributed to shareholders on June 6. 

According to Insider Monkey’s first quarter database, 35 hedge funds were bullish on LyondellBasell Industries N.V. (NYSE:LYB), compared to 33 funds in the preceding quarter. Cliff Asness’ AQR Capital Management is the leading position holder in the company, with a stake worth $195.4 million. 

Here is what Miller Howard Investments has to say about LyondellBasell Industries N.V. (NYSE:LYB) in its Q3 2021 investor letter:

“We initiated a position in LyondellBasell (LYB). Chemical markets are currently robust given the combination of 2020 plant shutdowns and strongly recovering demand. Despite the tailwinds, Lyondell trades at a low valuation and yields just under 5%.”

3. Carlisle Companies Incorporated (NYSE:CSL)

Number of Hedge Fund Holders: 36

Carlisle Companies Incorporated (NYSE:CSL) manufactures engineered products, with its operations divided into four segments – Carlisle Construction Materials, Carlisle Weatherproofing Technologies, Carlisle Interconnect Technologies, and Carlisle Fluid Technologies. Its products include thermoplastic polyolefin, block-molded expanded polystyrene insulation, protective roofing underlayments, and premium rubber, to name a few. Carlisle Companies Incorporated (NYSE:CSL) is one of the best rubber and plastics stocks to watch. On June 15, the company announced that it will sell Carlisle Fluid Technologies to an affiliate of Lone Star Funds for $520 million. The deal is expected to close in the third quarter of 2023.

According to Insider Monkey’s first quarter database, 36 hedge funds were bullish on Carlisle Companies Incorporated (NYSE:CSL), compared to 41 funds in the preceding quarter. David Blood and Al Gore’s Generation Investment Management is the biggest stakeholder of the company, with 1.06 million shares worth $240.8 million. 

Ave Maria Rising Dividend Fund made the following comment about Carlisle Companies Incorporated (NYSE:CSL) in its Q1 2023 investor letter:

“A total of five positions were eliminated from the Fund during the quarter due to valuation, a small spin-off from a parent company, and a pending acquisition target. The Fund added one new position, Carlisle Companies Incorporated (NYSE:CSL) (building materials), during the quarter. The company possesses a strong balance sheet, operates with competitive advantages, and consistently produces above-average cash flow and dividend growth. The position was initiated when the stock dipped below our estimation of what the company is worth.”

2. Dow Inc. (NYSE:DOW)

Number of Hedge Fund Holders: 45

Dow Inc. (NYSE:DOW) provides material science solutions for packaging, infrastructure, mobility, and consumer industries. It operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. Dow Inc. (NYSE:DOW) is one of the best rubber and plastics stocks to invest in. On April 25, the company reported a Q1 non-GAAP EPS of $0.58 and a revenue of $11.9 billion, outperforming Wall Street estimates by $0.21 and $560 million, respectively. The company beat its top and bottom line estimates in the first quarter of 2023. 

According to Insider Monkey’s first quarter database, 45 hedge funds were bullish on Dow Inc. (NYSE:DOW), with combined stakes worth $1.3 billion. Richard S. Pzena’s Pzena Investment Management is the leading stakeholder of the company, with approximately 15 million shares worth $816.8 million. 

1. Berry Global Group, Inc. (NYSE:BERY)

Number of Hedge Fund Holders: 49

Berry Global Group, Inc. (NYSE:BERY) manufactures and markets plastic packaging products. On May 24, Truist Securities upgraded Berry Global Group, Inc. (NYSE:BERY)’s rating from Hold to Buy. The upgrade is attributed to the management’s strengthened commitment and urgency towards implementing cost saving measures in the near future. Truist also raised its price target on the stock to $73 from $69. Berry Global Group, Inc. (NYSE:BERY) is one of the top rubber and plastic stocks to invest in. 

According to Insider Monkey’s first quarter database, 49 hedge funds were bullish on Berry Global Group, Inc. (NYSE:BERY), compared to 47 funds in the prior quarter. Canyon Capital Advisors is the biggest stakeholder of the company, with 2.75 million shares worth $162.2 million. 

Bonhoeffer Capital Management made the following comment about Berry Global Group, Inc. (NYSE:BERY) in its Q3 2022 investor letter:

“Berry Global Group, Inc. (NYSE:BERY) is the largest rigid and flexible plastic and nonwovens packaging firm serving home, health and personal care, and food and beverage customers located in the United States, Europe, and emerging markets. BERY is part of Bonhoeffer’s consolidation theme and has characteristics of a public LBO. BERY is the Rodney Dangerfield of plastic packaging firms in that they have reduced debt to peer levels and the valuation of 7.3x earnings has not rerated to peer levels of 13-14x earnings. Over time, as BERY repurchases shares, the rerating should accelerate.

BERY is consolidating the plastic and nonwoven packaging industry in the US, European, and emerging markets. BERY has historically been the low-cost producer of the packaging market. In 2019, BERY made its largest acquisition-RPC, a European-centered competitor whose focus was more on the custom portion of the packaging market-for $3.5 billion. BERY financed the acquisition with debt which increased BERY’s Debt/EBITDA to close to 5.3x. RPC increased BERY’s footprint in Europe, as well as in the emerging markets. BERY generates 50% of its revenue from the US and Canada, 35% from Europe, and 15% from emerging markets…”(Click here to read the full text)

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