8 Chemical Stocks to Cook Up in Your Lab

by Portfolio Grader | May 1, 2012 2:51 pm

chemical stocks 185 8 Chemical Stocks to Cook Up in Your Lab[1]Chemical stocks certainly aren’t very interesting. They make fertilizers, synthetic rubbers and food additives among other unexciting products.

However, it’s hard to argue with the profitability of many of these businesses. After all, just because you don’t know what chemicals go into your favorite products doesn’t mean that the behind-the-scenes players aren’t making out very nicely.

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 identify eight chemical stocks 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.”

Agrium (NYSE:AGU[3]) is a global producer and marketer of nutrients for the agricultural and industrial markets. Since the start of 2011, AGU stock has gained 31%, compared to smaller gains by the broader markets. Agrium stock gets an “A” grade for sales growth, an “A” grade for operating margin growth, an “A” 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, an “A” grade for cash flow and an “A” grade for return on equity. For more information, view my complete analysis of AGU stock[4].

CF Industries (NYSE:CF[5]) produces and distributes nitrogen and phosphate fertilizer products worldwide. CF stock has gained 33%, year-to-date. CF stock gets an “A” grade for sales growth, an “A” grade for operating margin growth, an “A” grade for earnings growth, an “A” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow and an “A” grade for return on equity. For more information, view my complete analysis of CF stock[6].

Ecolab (NYSE:ECL[7]) works with companies in the hospitality, foodservice, healthcare and industrial markets. Since the start of 2012, Ecolab stock has gained 21%. ECL stock gets a “B” grade for sales growth and a “B” grade for return on equity. For more information, view my complete analysis of ECL stock[8].

LyondellBasell (NYSE:LYB[9]) is an independent chemical company that is up 29% since Jan. 1. LyondellBasell stock gets an “A” grade 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[10].

Monsanto (NYSE:MON[11]) provides agricultural products for farmers. MON stock is up 9%, year-to-date. 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 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[12].

PPG Industries (NYSE:PPG[13]) is a global supplier of protective and decorative coatings that has posted a gain of 26% in the past four months. PPG stock gets a “B” grade for operating margin growth, an “A” 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 PPG stock[14].

Praxair (NYSE:PX[15]) is an industrial gases supplier. Compared to small gains by the broader markets, PX stock has gained 8%, year-to-date. PX stock gets a “B” grade for operating margin growth, a “B” grade for earnings momentum and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of X stock[16].

Sherwin-Williams (NYSE:SHW[17]) is a well-known paint company that is up 35% in the last four months. Sherwin-Williams stock gets a “B” grade for sales growth, a “B” grade for earnings growth, a “B” grade 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 SHW stock[18].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[19] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

 

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/10/chemical-stocks_185.jpg
  2. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  3. AGU: http://studio-5.financialcontent.com/investplace/quote?Symbol=AGU
  4. For more information, view my complete analysis of AGU stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=AGU&submit=submit&type=site
  5. CF: http://studio-5.financialcontent.com/investplace/quote?Symbol=CF
  6. For more information, view my complete analysis of CF stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=cf&submit=submit&type=site
  7. ECL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ECL
  8. For more information, view my complete analysis of ECL stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ecl&submit=submit&type=site
  9. LYB: http://studio-5.financialcontent.com/investplace/quote?Symbol=LYB
  10. For more information, view my complete analysis of LYB stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=lyb&submit=submit&type=site
  11. MON: http://studio-5.financialcontent.com/investplace/quote?Symbol=MON
  12. For more information, view my complete analysis of MON stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=mon&submit=submit&type=site
  13. PPG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PPG
  14. For more information, view my complete analysis of PPG stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ppg&submit=submit&type=site
  15. PX: http://studio-5.financialcontent.com/investplace/quote?Symbol=PX
  16. For more information, view my complete analysis of X stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=px&submit=submit&type=site
  17. SHW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SHW
  18. For more information, view my complete analysis of SHW stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=shw&submit=submit&type=site
  19. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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