FMC Corp (FMC), Praxair, Inc. (PX): Stocks to Consider in the Chemical Industry

Final words

FMC Corp (NYSE:FMC) has a very sound financial position, unlike its competitors, due to its diversified revenue base. The revenue of the company grew at a rate of 6.3% while per share earnings grew at a rate of 20.5% over the last three years. The dividends announced for investors have been increasing year on year since the company started paying a dividend. Its margins are considerably higher than the industry average, and the debt profile is also better than its industry peers. Due to the recent acquisition, the company’s profitability will further improve making this stock more attractive for the investors. So, I recommend this stock as a strong buy.

Praxair, Inc. (NYSE:PX) has a stable financial position. The company’s EPS has been growing at a rate of 13.4%. Its dividend has also increased year on year. Its recent approaches to achieve deeper market penetration will add huge profits to its income statement due to the bright future outlook for industrial gasses market. So, in my opinion, this stock is profitable for both short term and long term investors.

Eastman Chemical Company (NYSE:EMN)’s financial position is also very stable. Previously, the company used to pay constant dividends, but for the last three years, its dividend yield has been increasing every year. Its acquisition of Solutia and expansion of Therminol 66 plant will bring higher revenue and improve profit margins. Therefore, I would recommend this stock as a buy.

The article Stocks to Consider in the Chemical Industry originally appeared on Fool.com.

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