7 Undervalued European Stocks To Invest In Now

5. LyondellBasell (NYSE:LYB) 

Number of Hedge Fund Investors: 41

Forward P/E Ratio as of September 26: 12.25

LyondellBasell (NYSE:LYB) is a multinational chemical company based in the United Kingdom. It is one of the world’s largest plastics, chemicals, and refining companies. The company is a leader in polymer production and is advancing its sustainability efforts, focusing on recycling and reducing its carbon footprint.

On September 19, LyondellBasell (NYSE:LYB) announced its first industrial-scale advanced recycling plant at its Wesseling, Germany site. The plant will utilize the company’s proprietary MoReTec technology to recycle hard-to-recycle plastics into raw materials that can be used to produce new plastic polymers. With the ability to operate under 100% renewable power, the plant is expected to reduce greenhouse gas emissions.

Furthermore, on August 22, LyondellBasell (NYSE:LYB) announced that it had entered into an agreement to acquire full ownership of APK, a recycling technology company based in Merseburg, Germany. The acquisition is expected to expand LyondellBasel’sl (NYSE:LYB) technology portfolio and strengthen its Circular and Low Carbon Solutions business, which is focused on developing innovative recycling technologies. The transaction includes existing assets and planned growth projects. It aims to upgrade LyondellBasell’s (NYSE:LYB) Circular and Low Carbon Solutions business and further diversify its portfolio of innovative recycling technologies.

LyondellBasell’s (NYSE:LYB) revenue is derived from two major business segments, Olefins & Polyolefins and Intermediates & Derivatives. The company’s management is planning to exit the refining business by next year, is committed to focus on the international Olefins & Polyolefins segment and is optimistic about demand in Europe.

LyondellBasell (NYSE:LYB) is among the highly attractive options for investors seeking a stable and growing dividend income; with a current dividend yield of 5.6% and a favorable outlook for long-term dividend growth, LyondellBasell (NYSE:LYB) a good fit for long-term investors and income-focused investors.

LyondellBasell (NYSE:LYB) is trading at a forward P/E ratio of 12.25 which is a 26.48% discount compared to the industry average of 16.66. Analysts have given the stock a Buy rating with an average price target of $104.45, which implies an upside of 9.6% from current levels. As of the second quarter, the stock is held by 41 hedge funds with stakes worth $630.03 million. Millennium Management is the largest stakeholder in the company and has a position worth $127.17 million as of June 30.