We maintain Market Weight exposure to the Chemicals sector with a likewise balanced approach to capital deployment within the group, i.e. commodity vs. specialty chemical exposure. As we enter the later stages of the economic and interest-rate cycles, we would expect capital to rotate into chemical stocks that offer some combination of three features: (A) sustainable growth drivers; (B) earnings with potential to ascend from sub-normal levels; and (C) cleaner balance sheets.

Top Picks:

  • Albemarle Corporation (ALB)
  • FMC Corp. (FMC)
  • Huntsman Corporation (HUN)