1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Exxon Mobil Corporation (NYSE:XOM) is an American multinational oil and gas corporation and one of the largest integrated fuels, lubricants, and chemical companies in the world. The company is also a major producer of a variety of advanced plastics, including polypropylene and polyethylene.
The company is making significant strides in the field of advanced recycling, which positions it as a promising investment opportunity for those interested in plastics. On November 21, 2024, Exxon Mobil Corporation (NYSE:XOM) announced a substantial investment of over $200 million to enhance its advanced recycling operations at its facilities in Baytown and Beaumont, Texas. This expansion will enhance the company’s ability to recycle hard-to-process plastics and divert them from landfills. The advanced recycling process transforms plastic waste into raw materials for various products, including fuels and high-performance plastics and chemicals. This method can handle types of plastic that traditional recycling cannot, helping to reduce waste and support a circular economy for plastics.
With this investment, Exxon Mobil Corporation (NYSE:XOM) will boost its annual recycling capacity to 500 million pounds, moving closer to its goal of reaching 1 billion pounds per year by 2027. Exxon Mobil (NYSE:XOM) is also developing additional recycling projects across North America, Europe, and Asia. The company has advanced recycling customers in over 15 countries across various sectors, such as food-safe packaging and pet food, where demand is growing.
Exxon Mobil Corporation (NYSE:XOM) is also advancing its technology-driven businesses, particularly with its innovative Proxxima thermoset resin. This new material is not only stronger and lighter than traditional options, but it also boasts superior corrosion resistance. Exxon Mobil (NYSE:XOM) estimates that the total addressable market for Proxxima could reach 5 million tons per year and a potential market value of $30 billion by 2030. Exxon Mobil Corporation’s (NYSE:XOM) strong market presence, combined with its strategic investments in advanced materials, positions it as a strong stock to consider for investors looking for growth in the plastics and materials sector.
Overall, XOM ranks first among the 8 best plastics stocks to invest in now. While we acknowledge the potential of plastics companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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