5 Best Specialty Chemical Stocks To Buy Now

In this article, we discuss 5 best specialty chemical stocks to buy now. If you want to read our detailed discussion on the specialty chemicals industry, head over to 12 Best Specialty Chemical Stocks To Buy Now.

5. Avantor, Inc. (NYSE:AVTR)

Number of Hedge Fund Holders: 40

Ranked 5th on our list of the best specialty chemical stocks, Avantor, Inc. (NYSE:AVTR) delivers essential products and services to clients within the biopharmaceutical, healthcare, education, government, advanced technologies, and applied materials sectors across the Americas, Europe, Asia, the Middle East, and Africa. The company also offers logistics, glassware autoclaving, chemical and equipment monitoring, and a range of scientific research support services. Established in 1904, Avantor, Inc. (NYSE:AVTR) has its headquarters in Radnor, Pennsylvania.

According to Insider Monkey’s second quarter database, 40 hedge funds were bullish on Avantor, Inc. (NYSE:AVTR), in contrast to the previous quarter when 51 funds had invested in the stock. Michael Kahan and Jeremy Kahan’s North Peak Capital is the largest position holder in the company, with approximately 6.5 million shares worth $133.14 million.

ClearBridge Mid Cap Growth Strategy made the following comment about Avantor, Inc. (NYSE:AVTR) in its Q4 2022 investor letter:

“The health care sector also proved challenging as many of our portfolio companies continued to be plagued by headwinds from the third quarter: extended sales cycles and a drop off in COVID-19 revenues. We took the opportunity to re-evaluate each of our health care holdings and reposition ourselves for greater opportunities. We exited our position in Avantor, Inc. (NYSE:AVTR), provider of mission-critical products and services to customers in the biopharma, healthcare, education and government industries, due to the company’s poor execution in integrating its acquisitions of Ritter GmbH and Masterflex while incurring higher leverage.”

4. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 41

Albemarle Corporation (NYSE:ALB) is a global company involved in the development, production, and distribution of specialty chemicals. It is one of the best chemical stocks to buy now. The company’s operations are divided into three segments – Lithium, Bromine, and Catalysts. Albemarle Corporation (NYSE:ALB)’s products cater to different industries including energy storage, petroleum refining, automotive, consumer electronics, construction, crop protection, lubricants, and pharmaceuticals. 

On September 12, Albemarle Corporation (NYSE:ALB) announced that it has received approval from the U.S. Department of Defense for a $90 million grant for the expansion of domestic mining and lithium production for the U.S. battery supply chain. The company plans to utilize the grant to acquire mining equipment as part of its plan to reopen its lithium mine in North Carolina.

According to Insider Monkey’s second quarter database, 41 hedge funds were bullish on Albemarle Corporation (NYSE:ALB), same as the preceding quarter. Philippe Laffont’s Coatue Management held a significant position in the company, with 691,853 shares worth $154.35 million.

Aristotle Small/Mid Cap Equity Composite made the following comment about Albemarle Corporation (NYSE:ALB) in its second quarter 2023 investor letter:

“Albemarle Corporation (NYSE:ALB), the world’s largest lithium producer was sold from the portfolio amidst the announcement from Chile’s president that he would nationalize the country’s lithium industry and in time transfer control from SQM and Albemarle to a separate state-owned company effectively changing long-term risk/reward ratio of the stock, in our view.”

3. Air Products and Chemicals, Inc. (NYSE:APD)

Number of Hedge Fund Holders: 43

Air Products and Chemicals, Inc. (NYSE:APD) supplies atmospheric gasses, process and specialty gasses, along with equipment and associated services across the Americas, Asia, Europe, the Middle East, India, and other regions. The company was established in 1940 and is headquartered in Allentown, Pennsylvania. Air Products and Chemicals, Inc. (NYSE:APD) ranks high on our list of the best specialty chemical stocks.

On August 3, Air Products and Chemicals, Inc. (NYSE:APD) announced third quarter results for fiscal year 2023. The company reported a non-GAAP EPS of $2.98, outperforming market consensus by $0.07, while its revenue came in at $3.03 billion, missing estimates by $254.21 million.

According to Insider Monkey’s second quarter database, 43 hedge funds were bullish on Air Products and Chemicals, Inc. (NYSE:APD), compared to 48 funds in the prior quarter. Dmitry Balyasny’s Balyasny Asset Management is the leading stakeholder of the company, with 272,134 shares worth $81.5 million.

ClearBridge Large Cap Value Strategy made the following comment about Air Products and Chemicals, Inc. (NYSE:APD) in its Q4 2022 investor letter:

“In the materials sector, Air Products and Chemicals, Inc. (NYSE:APD)’s ability to recover higher energy costs, particularly in Europe as it continues to execute on its growth projects, has helped it to generate a positive return for the year and made it a strong contributor. The capital APD is deploying into hydrogen products globally is finally getting noticed as Europe is looking to diversify away from Russian natural gas and the Inflation Reduction Act (IRA) benefits domestic investments in renewables, such as APD’s $4.5 billion blue hydrogen project in Louisiana and its $4 billion green hydrogen production facility in Texas. APD is also teaming up with World Energy to build a $2.5 billion sustainable aviation fuel production facility in Southern California, a project that should also benefit from the IRA.”

2. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders: 56

Ecolab Inc. (NYSE:ECL) provides water, hygiene, and infection prevention solutions and services globally. It functions through three segments – Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences. Ecolab Inc. (NYSE:ECL) markets its products through field sales, corporate account personnel, distributors, and dealers. It is one of the best chemical stocks. Established in 1923, the company is headquartered in Saint Paul, Minnesota.

On August 3, Ecolab Inc. (NYSE:ECL) declared a $0.53 per share quarterly dividend, in-line with previous. It is to be paid on October 16 to shareholders of record as of September 19.

According to Insider Monkey’s second quarter database, 56 hedge funds were bullish on Ecolab Inc. (NYSE:ECL), up from 53 funds in the last quarter. Bill & Melinda Gates Foundation Trust held the largest position in the company, with 5.22 million shares worth $974.16 million.

Madison Sustainable Equity Fund made the following comment about Ecolab Inc. (NYSE:ECL) in its second quarter 2023 investor letter:

“Ecolab Inc. (NYSE:ECL) is benefiting from price increases put in place last year to offset inflationary pressures. The price increases more than offset flattish volumes and are modestly ahead of raw material inflation resulting in a return to earnings growth. We believe that Ecolab’s profitability will improve going forward from market share gains and its fast-growing bioprocessing business.”

1. Linde plc (NYSE:LIN)

Number of Hedge Fund Holders: 70

Linde plc (NYSE:LIN) is an industrial gas company that operates across North and South America, Europe, the Middle East, Africa, and the Asia Pacific. They provide a variety of gasses, from common ones like oxygen and nitrogen to specialty gasses like electronic and acetylene. Linde plc (NYSE:LIN) serves a range of industries including healthcare, chemicals, manufacturing, mining, and more. It is one of the best chemical stocks to buy now.

On July 17, Linde plc (NYSE:LIN) announced the signing of two significant agreements in Brazil to source renewable energy, boosting its global renewable energy capacity by over 60%. White Martins, a subsidiary of Linde plc (NYSE:LIN), has entered into these agreements, securing a supply of more than 2 million megawatt-hours of renewable energy annually. This allows Linde plc (NYSE:LIN) to replace nearly half of its current power usage in Brazil.

According to Insider Monkey’s second quarter database, 70 hedge funds were bullish on Linde plc (NYSE:LIN), same as the preceding quarter. Alexander Mitchell’s Scopus Asset Management is the leading position holder in the company, with 116,885 shares worth $44.54 million.

Madison Funds made the following comment about Linde plc (NYSE:LIN) in its fourth-quarter 2022 investor letter:

“Linde plc (NYSE:LIN) stock was strong during the fourth quarter following a solid third quarter. Linde remains well positioned with the passage of the Inflation Reduction Act and energy transition with carbon dioxide sequestration opportunities, gasification services, and various hydrogen projects. Linde and Schlumberger announced that they entered into a collaboration of carbon capture, utilization, and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide capture and sequestration. The collaboration will focus on hydrogen and ammonia production where carbon dioxide is a by-product. The International Energy Agency estimates that 6 Gigatons of carbon dioxide will need to be abated with CCUS in order to reach net zero by 2050. During the quarter, Linde also announced that it became a signatory to the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative. As a signatory, Linde has committed to aligning its strategy and activities with the UNGC’s Ten Principles across human rights, labor, environment, and anti-corruption.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 11 Best Cybersecurity Stocks Hedge Funds Are Buying and 13 Best Robotics Stocks To Buy Now.