Houston-headquartered LyondellBasell Industries N.V. (LYB) operates globally as a chemical powerhouse across the Americas, Europe, Asia, and beyond. It spans six dynamic segments: Olefins and Polyolefins—Americas, Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology. From producing polyethylene and propylene to refining crude oils and developing cutting-edge polymers and catalysts, LyondellBasell serves diverse industries like automotive, food packaging, and paints, shaping innovation in chemical and polymer solutions worldwide. Its market cap currently stands at $31.2 billion.
Companies worth $10 billion or more are generally described as “large-cap stocks,” LyondellBasell fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the specialty chemical industry. With its expansion into various segments and countries, LyondellBasell has established a strong foothold in the industry.
Despite its strengths, LyondellBasell slipped 10.2% from its 52-week high of $107.02, achieved on May 8. LYB stock declined 5.9% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 4.7% gains during the same time frame.
In the longer term, LYB stocks gained 1.2% on a YTD basis and 6% over the past 52 weeks, substantially underperforming the SPX’s 15.3% rally in 2024 and 25.7% gains over the past year.
To validate the bearish trend, LyondellBasell has traded below its 50-day moving average since mid-April, with a few fluctuations, and has recently dipped below its 200-day moving average.
LyondellBasell's stock faced a tough year in 2023 amid challenges in the petrochemical markets. Soft global demand and economic uncertainty weighed heavily, particularly impacting margins across its Olefins & Polyolefins, Intermediates & Derivatives, and Advanced Polymer Solutions segments. These factors led to LYB stock underperformance relative to the broader market.
However, on April 26, the company surprised investors with better-than-expected Q1 earnings results, prompting a 2.5% uptick in its stock. Additionally, LyondellBasell increased its dividend last month, which further buoyed investor sentiment, contributing to a subsequent 1.3% increase in its share price.
In the world of chemical giants, LyondellBasell emerges as the frontrunner over its competitor, Dow Inc. (DOW). DOW stock has dipped 2.7% on a YTD basis and gained marginally over the past 52 weeks, underperforming LYB’s gains over the respective periods.
Wall Street analysts are cautiously bullish on LyondellBasell’s prospects. The stock has a consensus “Moderate Buy” rating from 18 analysts covering the stock. The mean target of $107.94 suggests a potential upside of 12.6%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
