We recently published a list of 11 Stocks That Will Go to the Moon According to Reddit. In this article, we are going to take a look at where Chemours Co. (NYSE:CC) stands against other stocks that will go to the moon according to Reddit.
Saira Malik, Nuveen’s Head of Equities and Fixed Income, recently joined CNBC’s ‘Closing Bell’ on February 18 to discuss opportunities outside the tech sector and her outlook for the markets. She began by addressing the two primary factors driving markets this year: technology and tariffs. Malik highlighted that while tech stocks have dominated the narrative, recent developments, such as DeepSeek’s announcement, have raised concerns about the immense spending in AI and the uncertainty surrounding its monetization and returns. Malik emphasized looking beyond tech to areas like infrastructure. She mentioned utility companies as a promising investment. When asked about momentum stocks, Malik explained that the momentum trade has propelled markets over the past few years, with the S&P 500 delivering over 20% annual gains during that period. However, this growth was largely concentrated in the MAG7, which resulted in an S&P 500 valuation premium of 20% above historical averages entering this year. She noted that the momentum trade is now unwinding, partly due to inflated expectations around AI and the lack of productivity gains despite tens of billions of dollars spent in the space.
Malik pointed out that international markets are outperforming US markets this year. European markets, in particular, entered 2025 with a 40% valuation discount compared to US markets and have a more cyclical bias. She stated that year-to-date returns suggest investors would benefit from owning international equities. While she expects the S&P 500 to post about 7% earnings growth for 2025 (following a strong Q4 with 12% year-over-year earnings growth), she believes international markets may continue to outperform due to their discounted valuations and cyclical exposure. Malik concluded by emphasizing the importance of being selective in this market environment. She recommended focusing on smaller mid-cap companies with profits, lower leverage, reduced refinancing risks, or economic sensitivity. Sectors like financials could thrive if deregulation or increased mergers and acquisitions activity materialize. She advised investing in stocks with upward earnings estimate revisions rather than those facing downward adjustments to capitalize on current market conditions.
Methodology
We first sifted through threads and posts on WSB and similar subreddits to compile a list of the top trending stocks among retail investors. We then selected the 11 stocks that analysts were bullish on and had an average upside potential over 40% as of March 3. We also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician performing quality checks on a range of specialty chemicals.
Chemours Co. (NYSE:CC)
Upside Potential as of March 3: 47.16%
Number of Hedge Fund Holders: 40
Chemours Co. (NYSE:CC) delivers a range of performance chemicals globally. It operates through Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials segments. It serves various industries from refrigeration and coatings to advanced materials. It utilizes direct and indirect sales channels to reach its customers.
The company’s primary growth driver is its Thermal & Specialized Solutions (TSS) segment, particularly Opteon Refrigerants. This segment focuses on producing and selling refrigerants. The Opteon Refrigerants are a key product line which are designed to replace older and environmentally harmful refrigerants with more sustainable alternatives. In Q4 2024, TSS net sales hit a record $390 million, which was an improvement of 3% year-over-year. Opteon sales alone surged 23%.
The company expanded Opteon capacity at Corpus Christi by 40%, with half available in 2025 and the rest in 2026. This supports Chemours Co.’s (NYSE:CC) anticipated double-digit Opteon growth in 2025. In the first quarter of 2025, TSS sales are expected to rise sequentially due to Opteon. Full-year 2025 results should also improve due to the same reasons.
Buckley Capital sees strong growth and high-profit potential in the company’s TSS division due to its environmentally friendly, high-margin Opteon product. It stated the following regarding Chemours Co. (NYSE:CC) in its Q3 2024 investor letter:
The Chemours Company (NYSE:CC) is an investment we have owned since 2018, very profitably until this year. It is composed of 3 different businesses – TSS, APM, and TT – that are each the #1 or #2 players in their respective categories.
The company’s Thermal & Specialized Solutions division (TSS) sells environmentally friendly refrigerants on a global basis, with the primary refrigerants being Opteon and Freon. Opteon is more environmentally friendly, therefore Freon is being slowly phased out by government mandate. This is very beneficial for Chemours since Opteon is very high-margin and has little competition, whereas Freon has more competitors and overall lower margins. This should lead to high single-digit growth in the TSS segment, with 30%+ EBITDA margins. We believe it is possible TSS margins could get to 40%, given that they have neared that number in the past and that as Chemours sells more Opteon, its margins should trend higher. This means TSS should be able to earn around $800m in EBITDA in the next 2 years…” (Click here to read the full text)
Overall, CC ranks 7th on our list of stocks that will go to the moon according to Reddit. While we acknowledge the growth potential of CC, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.