LyondellBasell Industries N.V. (LYB), headquartered in Houston, Texas, is a global chemical company specializing in producing chemicals, plastics, and refining technologies. With a market cap of $30.34 billion, LyondellBasell plays a pivotal role in the materials sector, offering a diverse range of products that serve industries such as packaging, automotive, and construction while maintaining a strong commitment to sustainability and innovation.
Companies valued at around $10 billion or more are classified as "large-cap stocks," and LyondellBasell is a prime example of this. Its extensive portfolio of chemicals, plastics, and refining technologies positions it as a major player in the global materials sector, providing essential products that support various industries.
LYB shares are trading 12.9% below their 52-week high of $107.02, which they hit on May 8. The stock has declined 2.5% over the past three months, underperforming the broader Nasdaq Composite ($NASX), which has marginally gained over the same time frame.
In the longer term, LYB is down 2% on a YTD basis, and the shares have declined by 5.7% over the past 52 weeks. In comparison, the Nasdaq has gained 17.8% in 2024 and rallied 28% over the past year.
To confirm its recent bearish trend, LYB has been trading below its 200-day and 50-day moving averages since early September.
On Aug. 2, LYB reported Q2 results. Its sales and other operating revenues gained 2.4% year over year to $10.56 billion. The company’s adjusted net income grew 29.2% year over year to $924 million, and its adjusted EPS stood at $2.82, representing an increase of 29.4% year over year. LYB shares declined more than 3.8% on the day of the results.
Highlighting the contrast in performance, LYB's competitor, Olin Corporation (OLN), has underperformed both the LYB and the broader index. OLN has declined 20.4% on a YTD basis.
Analysts are moderately bullish about LYB's prospects despite the weak price performance. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target of $104.70 reflects a 12.4% premium over current levels.
On the date of publication, Rashmi Kumari 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.
