A gradual economic recovery leads to high industrial demand for chemicals. Dow (DOW) and DuPont (DD) are already seeing big gains in earnings. But which of these two stocks is a better buy now? Read more to find out.Dow Inc. (DOW) provides various materials science solutions for consumer care, infrastructure, and packaging markets. It operates through Packaging (NYSE:PKG) & Specialty Plastics; Industrial Intermediates & Infrastructure; and Performance Materials and Coatings segments. On the other hand, DuPont de Nemours, Inc. (NYSE:DD) provides technology-based materials, ingredients, and solutions. It operates in three segments: Electronics & Imaging; Transportation & Advanced Polymers; and Safety & Construction.
Despite concerns related to carbon emissions and supply chain crisis, the recovery of the chemical industry has been primarily driven by high demand for substances like plastics and methanol, according to the International Energy Agency (IEA). The chemical industry is one of the United States' largest manufacturing industries, serving a sizable domestic market and an expanding global market. The demand for chemicals is expected to increase in the upcoming months, with the reopening of the economy leading to the rising use of chemicals in major end-markets such as packaging, automotive, and construction. Therefore, both DOW and DD should benefit.
DD has gained 4.7% over the past three months, while DOW has delivered negative returns. Also, DD’s 6.2% gains year-to-date are higher than DOW’s negative returns. Moreover, DD is the clear winner with 17.6% gains versus DOW’s negative returns in terms of the past year’s performance.