Are chemical stocks cyclical?

Because of the close interconnections with so many other industries, the fortunes of the chemical industry are strongly correlated with the health of the overall economy. As a result, chemical stocks tend to be cyclical in nature. For long-term investors, though, buying and holding the stocks of high-quality chemical companies can pay off nicely.

Is Dow Chemical a good stock to buy?

DOW is trading within a range we consider fairly valued. Dow Chemical benefits from its cost-advantaged North American operations that use low-cost natural gas-based feedstock. The vast majority of Dow’s products are commodities whose prices move with Brent oil prices.

Are chemical stocks a good investment?

Chemicals are in the car you drive, the clothes you wear, and almost everything else. The global chemical industry is huge, with almost $4 trillion in total annual revenue. Any market of that size presents opportunities for investors. Here’s what you need to know about investing in chemical stocks.