OM Group, Inc. (OMG), Methanex Corporation (USA) (MEOH): Specialty Chemical Companies for You to Consider

Higher pricing and demand ought to allow for earnings growth in the near term. The likes of Royal Dutch Shell and other customers are likely to purchase additional quantities of lubricants, engine oil, and fuel additives. A greater economic recovery should help. Also, further acquisitions would boost the rate of sales and profit growth further.

NewMarket Corporation (NYSE:NEU) shares’ forward P/E ratio is 14.2 as of this report. The stock is more appealing as a near-term growth investment than anything else.

Conclusion

Rating the three stocks listed here in order from best to worst:

1. Methanex Corporation (USA) (NASDAQ:MEOH) shares are appealing for the year ahead, at least, as a growth holding. Its main product, methanol, is receiving solid demand from gasoline producers worldwide. Plus, it is investing in growth projects that ought to allow it to capitalize on higher demand and economic growth internationally.

2. NewMarket Corporation (NYSE:NEU) operates in a highly profitable market with better-than-average gross margins and profit margins. Its petroleum additives business is likely to fare well over the next year and the long term, depending on stable fuel prices and economic growth.

3. OM Group, Inc. (NYSE:OMG) stock is attractive mostly in light of the company’s streamlining activity. It has had a nice uphill climb over the past year.

Damon Churchwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Damon is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Specialty Chemical Companies for You to Consider originally appeared on Fool.com is written by Damon Churchwell.

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