Goodyear Tire & Rubber (NASDAQ:GT)
Goodyear Tire & Rubber Co manufactures and sells a variety of rubber tires under the Goodyear brand name. The firm’s tires are used for automobiles, trucks, buses, aircraft, motorcycles, mining equipment, farm equipment, and industrial equipment. The company operates its business through three operating segments representing its regional tire businesses: Americas; Europe, the Middle East and Africa (EMEA); and the Asia Pacific.
Carlisle Companies (NYSE:CSL)
Founded in 1917, Carlisle is a diversified, global portfolio of niche brands and businesses that manufacturers highly engineered products and solutions for its customers. Besides rubber and plastic, these products cater to markets such as commercial roofing, specialty polyurethane, architectural metal, aerospace, medical technologies, defense, transportation, industrial, protective coating, auto refinishing, agriculture and construction.
The company stock has an annual dividend yield of 1.9%. It has an EPS of $7.92 and a P/E ratio of 14.61. Carlisle has a market cap of $6.3 billion and trades over 500,000 shares per day. It reported total revenue of 4.8 billion in 2019.
Carlisle has recently completed an amendment and extension of its unsecured credit facility. The terms of the new credit facility include $1 billion of unsecured committed credit with a 5-year maturity to 2025. It also declared a dividend of $0.50 per share to its shareholders.
A global materials solutions provider, Trinseo is a manufacturer of plastics, latex binders and synthetic rubber. Its plastic is primarily used to create LED lighting and medical devices, synthetic rubber is extensively used in tire manufacturing and latex binders are used in packaging materials. The company has 17 manufacturing sites and 11 research and development facilities globally.
A total revenue of $3.7 billion was reported in 2019. Trinseo currently has an EPS of $0.44 and a P/E ratio of 43.02. The company’s annual stock dividend yield is also 9.2%.
In February 2020, the board of directors at Trinseo authorized a quarterly dividend of $0.40 per share. More recently, Trinseo announced a price hike for all of its polystyrene products sold in Europe.
Myers Indus (NYSE:MYE)
Myers Industries Inc is a plastic manufacturer of returnable packaging, storage and safety products and specialty molding. It manufactures a range of polymer products for industrial, agricultural, automotive, commercial, and consumer markets. It operates through the following segments: The Material Handling segment, which designs manufactures and markets a variety of plastic and metal products. The Distribution segment offers tools, equipment, and supplies used for tire, wheel, and under-vehicle service on passenger, heavy truck, and off-road vehicles.
Headquartered in Crystal Lake, Illinois, AptarGroup is a leading global supplier of dispensing systems such as aerosol valves, pumps, and closures to the consumer goods and pharmaceutical markets. With the bulk of its annual net sales coming from Europe (50% of sales) and the United States (33%), Aptar aims to increase its presence in Asia (10%) and Latin America (7%). Aptar’s pharmaceutical division generates roughly one-third of group sales but over two thirds of group profits.
From cars to domestic home appliances, rubber and plastic are prevalent across major industries. Invest in plastic rubber stocks right now and expose your portfolio to 2 of the most-used materials on the planet.
Here’s a guide to help you pick the best rubber and plastic stocks to invest your money in.
Quick Look at the Best Rubber & Plastics Stocks:
Overview: Rubber and Plastic Stocks
Rubber is extensively used by tire manufacturers, which have maintained a high demand for good-quality rubber to date. Globally, millions upon millions of cars are produced every year.
Plastic is a relatively new material compared to older resources such as wood, metal and oil. Its broad application in packaging, toys and other industrial products means it’s 1 of the most widely produced materials today.
Plastic pollution has become a serious environmental concern. Since plastic is non-biodegradable, tons of plastic are dumped into oceans and threaten marine life. While this issue has curbed its production worldwide, plastic is still an irreplaceable asset to many industrial sectors because of its cost-effectiveness and durability. Many plastic manufacturers are working on bioplastics made from renewable biomass sources to overcome this challenge.
Rubber and plastic stocks regularly outperform earnings per share (EPS).
Companies like AptarGroup, Carlisle Companies Inc. and PolyOne Corp. regularly beat out earnings estimates every quaarter.
These are reassuring signs that these stocks can become top-performing investments in your portfolio.
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Features to Look for in Rubber and Plastic Stocks
- EPS: You can determine the profitability of a company by its EPS. Divide the company’s net income by its total number of outstanding shares to get its EPS. Take a look at the EPS over each quarter in the last fiscal year to see if the company is beating the estimates or underperforming.
- P/E ratio: The price-earnings (P/E) ratio can assess the value of a stock. If the P/E ratio is more than 20, it might be overvalued. If the P/E ratio is less than 10, it is considered undervalued. Check out these stocks under for the most undervalued investments.
- Yearly revenue: The total revenue generated by a company is a good indication of its financial health. Compare the yearly revenue from previous years to assess its growth. In some cases, the cost of raw materials such as oil and petroleum are cheaper, resulting in higher profits.
If you’re interested in trading stocks before trading sessions open, take a look at these premarket movers.
Add Rubber and Plastic Stocks to Your Portfolio
Due to its broad range of industrial applications, rubber and plastic can almost be considered commodities. The low cost of investment and regular dividends earned from these stocks can diversify your portfolio and build your wealth at the same time.
Don’t miss out on more stock news! Check out Benzinga’s best stocks under $20.
The Rubber and Plastics industry is made up of companies that manufacture rubber and plastic goods, such as rubber tubing, piping, belts, and more.
What are rubber and plastic stocks?
Rubber and plastic stocks are shares of companies that manufacture goods made from plastic and rubber.
Are rubber and plastic stocks a good investment?
Rubber and plastic stocks are generally thought to be investments as they outperform many other stocks.
Do rubber and plastic stocks offer a low-entry for investors?
Yes, rubber and plastic stocks offer a low entry point for investors.