We not too long ago printed a listing of 11 Undervalued Chemical Shares to Purchase Now. On this article, we’re going to check out the place Methanex Company (NASDAQ:MEOH) stands towards different undervalued chemical shares to purchase now.
President Trump is trying to place 25% tariffs on items from Canada and Mexico and this might negatively affect US industries and demanding sectors past simply autos. In keeping with a report by CNBC in January 2025 by Lori Ann LaRocco, Canada is the biggest companion with the US for important chemical compounds.
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The US chemical compounds trade additionally exports an enormous quantity of merchandise to Canada. In 2023, US corporations offered over $28 billion in chemical compounds to Canadian prospects. However, Canadian companions export roughly $25 billion in chemical compounds to the US yearly, as per the American Chemistry Council.
Texas, California, Louisiana, North Carolina, Illinois, Ohio, Indiana, New York, Pennsylvania, and Iowa are the highest chemical-producing states and so they account for about 66% of whole US chemical manufacturing whereas the remainder of the chemical compounds are imported. In keeping with the American Chemical Council, Canada is the main supply of chemical imports to the US and accounted for 18.1% of the whole chemical imports in 2023. Canada is adopted by China and South Korea.
Eric Byer, CEO of the Alliance for Chemical Distribution, identified that if there’s a commerce conflict between Canada and the US, the worth of important chemical compounds might result in inflationary pressures on US customers and industries. In keeping with Byer, Canada exports roughly 80% of the chlorine utilized in disinfecting ingesting water for the West Coast states. He additionally identified that the US exports massive quantities of phenol to Canada to be used within the wooden merchandise trade. A few of that handled lumber is then additionally exported again into the US from Canada for home consumption and residential building functions.
The US-Canada chemical commerce relationship helps different industries as nicely and disruption of this commerce between the 2 international locations might have far-reaching penalties.
Our Methodology
To compile our checklist of the 11 undervalued chemical shares to purchase now, we seemed for the biggest chemical corporations. We reviewed our personal rankings, monetary media studies, ETFs, and numerous on-line sources to compile a listing of the most effective chemical shares. To seek out undervalued chemical shares, we narrowed down our choice by on the lookout for shares buying and selling at below 20 instances their ahead earnings as of March 28, 2025. Subsequent, we targeted on the highest 11 undervalued chemical shares most favored by institutional traders. Information for the hedge fund sentiment surrounding every inventory was taken from Insider Monkey’s This fall 2024 database of greater than 1,000 elite hedge funds. Lastly, the 11 undervalued chemical shares to purchase had been ranked in ascending order primarily based on the variety of hedge funds holding stakes in them as of This fall 2024.
