8 Best Plastics Stocks To Invest In Now

6. Dow Inc. (NYSE:DOW)

Number of Hedge Fund Holders: 31

Dow Inc. (NYSE:DOW) is a leading chemical and materials company that serves various high-growth markets, including packaging, infrastructure, mobility, and consumer applications. It is a major producer of essential plastics such as polystyrene, polyurethane, polyethylene, and polypropylene.

In June 2024, Dow Inc. (NYSE:DOW) announced its agreement to acquire Circulus, a prominent recycler specializing in converting plastic waste into post-consumer resin (PCR). This acquisition includes two facilities in Ardmore, Oklahoma, and Arab, Alabama, with a combined capacity of 50,000 metric tons per year. By integrating Circulus’ recycling capabilities with its own advanced materials science expertise, Dow Inc. (NYSE:DOW) aims to enhance its product offerings for applications like collation shrink packaging, stretch film, liners, and food packaging. This move aligns with the company’s commitment to transforming plastic waste into 3 million metric tons of circular and renewable solutions annually by 2030.

Additionally, on December 2, 2024, the company completed the sale of its flexible packaging laminating adhesives business for $150 million. This strategic divestiture supports Dow Inc.’s (NYSE:DOW) focus on higher-value growth areas. Proceeds from the sale of the flexible packaging laminating adhesives business will support Dow Inc.’s (NYSE:DOW) capital allocation priorities. Dow Inc.’s (NYSE:DOW) growth strategy emphasizes investments in high-demand sectors where it holds a competitive advantage. The company anticipates generating over $2 billion in underlying EBITDA from its near-term growth projects.

In the third quarter, Dow Inc. (NYSE:DOW) also expanded its circular product line by introducing new offerings. This includes REVOLOOP Recycled Plastic Resins, which use post-consumer recycled materials for cable jacketing. The company also launched its first Bio Circular Engage REN polyolefin elastomers designed for carpet tile backing. With a strong market position and ongoing efforts to enhance its circular economy initiatives, Dow Inc. (NYSE:DOW) represents an attractive investment opportunity for those looking to buy into the plastics sector.