LyondellBasell Industries N.V. LYB recently inked an agreement with Nexeo Plastics, a global thermoplastic resin distributor, to distribute the LYB Engineered Polymers portfolio, which is part of the Advanced Polymer Solutions (APS) division.

Nexeo’s established distribution network and technical competence will help LYB increase the reach of its Engineered Polymer solutions, meeting the growing demand for local assistance and ensuring customers have access to the goods they require. This partnership will enable the delivery of high-quality solutions to customers in core markets, which include mobility, electrical and electronics, industrial and appliances.

LYB provides a wide variety of compounds based on polyamides, polyesters and blends, among others. The Engineered Polymers covered in this agreement provide high-performance solutions for antistatic, heat stabilizers, flame retardants, UV stabilizers and other applications.

By accelerating growth through meaningful collaborations, LYB can develop creative solutions to meet the changing needs of its clients while boosting time to market. Nexeo Plastics is dedicated to providing great service and technical expertise to its customers, and the collaboration with LYB increases its ability to create personalized solutions that address the particular problems encountered by businesses across Europe.

LYB stock has lost 32.3% in the past year compared with the industry’s 17.5% decline.

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LYB, on its fourth-quarter call, said that it remains prepared for the macroeconomic drivers that will eventually spur supply-chain replenishment, increase demand for durable goods and aid a more widespread economic recovery. One sign of recovery is that North American domestic demand for polyolefins returned in 2024, following two years of declines. The company anticipates seasonal demand gains across most product categories in the first quarter. 

Interest rate cuts, inflation moderation and pent-up demand will also foster increasing consumption of durable goods, which is expected to boost the company's polypropylene and Intermediates and Derivatives businesses. Increased driving and summertime gasoline requirements are projected to result in usual seasonal increases in oxyfuels margins.

LYB’s Rank & Key Picks

LYB currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, CSW Industrials Inc. CSWI and Axalta Coating Systems Ltd. AXTA

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 156.6% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CSW Industrials’ current fiscal-year earnings is pegged at $8.50 per share. CSWI, carrying a Zacks Rank of 2 at present, surpassed the consensus estimate in each of the trailing four quarters, with an average earnings surprise of 10.1%. The company's shares have rallied 29.4% in the past year.

Axalta Coating Systems, which currently sports a Zacks Rank of 1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.3%, on average. AXTA’s shares have gained 1% over the past year. 

 

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This article originally published on Zacks Investment Research (zacks.com).

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