6 Chemical Stocks to Buy

by Louis Navellier | April 17, 2012 1:00 pm

[1]Yes, industrial suppliers are boring stocks. Yes, amid high unemployment and weakness in manufacturing there are much sexier sectors. But when it comes to the lifeblood of the economy, industrial chemicals may be just as important as flashy technologies.

Packaged foods use artificial sweeteners and preservatives, housewares uses space age polymers for comfort or cheap man-made materials to keep costs down. There are very few things in your home or office that don’t rely on the chemicals business in some way.

That means that these stocks are not just recession-proof investments, but great buys to play the chance of a long-term recovery.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[2] tool, ranking companies by a number of fundamental and quantitative measures. And this week I have six chemical stocks for you to buy.

Here they are, in alphabetical order. Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”

Air Products & Chemicals (NYSE:APD[3]) offers atmospheric gases, process and specialty gases, performance materials, equipment, and services to its customers. APD stock has gained 5% since the start of 2011. APD stock gets an “A” grade for return on equity. For more information, view my complete analysis of APD stock[4].

E.I. DuPont de Nemours & Co. (NYSE: DD[5]) is broken up into the following segments Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection and Pharmaceutical. DD stock has jumped 14% since January. DuPont stock gets a “B” grade for sales growth and an “A” grade for return on equity. For more information, view my complete analysis of DD stock[6].

Ecolab (NYSE:ECL[7]) works with companies in the hospitality, foodservice, healthcare and industrial markets. Since last April, Ecolab stock has gained 21%. ECL stock gets a “B” grade for sales growth, a “B” grade for the magnitude in which earnings projections have increased over the past months and a “B” grade for return on equity.For more information, view my complete analysis of ECL stock.

LyondellBasell (NYSE:LYB[8]) is an independent chemical company that has posted a strong gain of 36% in 2012. LyondellBasell stock gets an “A” for earnings momentum, an “A” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of LYB stock[9].

Monsanto (NYSE:MON[10]) provides agricultural products for farmers to increase crop production. In the last 12 months, MON stock has gained 14%. Monsanto stock gets a “B” grade for sales growth, a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and a “B” grade for return on equity. For more information, view my complete analysis of MON stock[11].

Syngenta AG (NYSE:SYT[12]) also produces products for crop productivity, including specialized seeds and pesticides. Syngenta rounds out the list with a 19% gain in the last four months. SYT stock gets a “B” grade for earnings growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, a “B” grade for cash flow and an “A” grade for return on equity. For more information, view my complete analysis of SYT stock[13].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[14] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

Source URL: https://investorplace.com/2012/04/6-chemical-stocks-to-buy-apd-dd-ecl-lyb-mon-syt/

---