We recently compiled a list of the 10 High Growth Chemical Stocks to Buy. In this article, we are going to take a look at where RPM International Inc. (NYSE:RPM) stands against the other high growth chemical stocks.
One of the key pillars of global manufacturing is the chemical industry. It supports a wide range of industries, including paints, coatings, plastics, specialty chemicals, petrochemicals, and agricultural chemicals. According to The Business Research Company, the chemical industry was valued at $5.6 trillion in 2024, projected to reach $6.16 trillion by 2025 at a compound annual growth rate (CAGR) of 9.7%. The primary drivers of its expansion are technological developments and the growing need for sustainable solutions, particularly in the fields of clean energy and digital transformation.
In 2024, the chemical industry showed signs of recovery as production growth surpassed 2023 levels, with demand steadily rebounding. According to Deloitte’s 2025 Chemical Industry Outlook report, this growing production trend is expected to continue into 2025. Despite the recovering production, the effects of 2023’s downturn are still being felt throughout the industry. Therefore, to counter lower revenues and margins, companies implemented cost-cutting programs in early 2024, which led to significant profit improvements.
Moreover, the chemical industry is seeing a rise in merger and acquisition (M&A) activity. A recent Insider Monkey article, citing a PwC report, stated that the value and volume of chemical M&A deals picked up in the second half of 2024. These deals were influenced by central bank rate cuts and a decrease in inflation. The momentum is expected to continue in 2025 as political and economic instability subsides.
Moving forward, cost-efficiency measures will remain a top priority, with strategies such as plant closures, workforce reductions, and asset rationalization expected to extend through 2025 and 2026. Even though major challenges persist, the industry’s efficiency strategies and resilience have set it up for a more stable future. Facing uneven market conditions, chemical companies are strategically shifting their focus toward high-growth sectors to sustain revenue and long-term growth. Accordingly, industries such as semiconductors, clean energy, and advanced materials are emerging as key priorities, offering strong demand and innovation opportunities.
As evident from the discussion above, the global chemical market is on a steady growth trajectory. This is evident through the projections that see it growing to $8.58 trillion by 2034. Furthermore, it is evident from our discussion that the companies that have been adopting cost-efficiency measures, sustainability initiatives, and strategic investments in high-demand sectors are the ones best positioned for long-term success.
Our Methodology
To compile our list of the 10 High Growth Chemical Stocks to Buy, we used the Finviz stock screener to identify publicly traded chemical companies with a market capitalization of $10 billion or higher, ensuring that only well-established industry leaders were considered.
Next, we extracted each company’s revenue for the recently completed five years. We then calculated their Compound Annual Growth Rate (CAGR) over this period, a key indicator of consistent financial performance and growth potential. Finally, we ranked the companies based on their 5-year CAGR and selected the top 10 companies with the highest growth rates.
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).
An aerial view of a large industrial roofing system installed by the specialty chemical company.
RPM International Inc. (NYSE:RPM)
Revenue CAGR: 6.10%
Market Capitalization: $15.87 billion
RPM International Inc. (NYSE:RPM) is a leading company in the specialty coatings, sealants, and adhesives sector, serving the industrial, construction, and consumer markets. It provides essential solutions for waterproofing, corrosion control, concrete protection, and restoration.
The company reported record sales of $1.85 billion for Q2 2025, which ended on November 30, 2024, showcasing its strong strategy execution. This impressive revenue growth was aided by volume growth across all segments. Adjusted EBIT rose 7.7%, while adjusted EPS rose 13.9% to $1.39, highlighting operational efficiency. Furthermore, the company’s operational cash flow, which stood at $279 million, was the second-highest in the company’s history.
RPM International Inc. (NYSE:RPM)’s financial and operational success can be attributed to its MAP 2025 strategy. The program is designed to drive structural cost improvements and operational efficiencies. This strategy has significantly improved the company’s working capital management, resulting in $1.5 billion in liquidity. Besides the MAP 2025 strategy, high-performance construction products, particularly turnkey roofing systems, remain key growth drivers for RPM.
Looking ahead, RPM International Inc. (NYSE:RPM) has forecast its 2025 sales to grow at a low single-digit rate. This would translate to a range of approximately $7.33 billion to $7.55 billion in sales, given that 2024 sales were approximately $7.26 billion and low single-digit growth typically indicates 1%-4%.
Despite the growth projections, macroeconomic challenges like foreign exchange headwinds, seasonal slowdowns, and potential tariff-related uncertainties could impact the company’s inventory levels and raw material costs.
Overall RPM ranks 9th on our list of the high growth chemical stocks to buy. While we acknowledge the potential of RPM as an investment, our conviction lies in the belief that certain 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 RPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
