Olin (NYSE:OLN) is one of the best performing stocks that is thriving due to increased demand for chemicals and its strong pricing power. Despite recent gains, the stocks remain quite cheap while growth prospects remain intact.Olin Corporation (OLN) manufactures and sells a variety of chemicals and chemical-based products. The company has 3 segments: Chlor alkali products; Vinyls, which generates the majority of revenue and includes products like chlorine and caustic soda; and Winchester which sells sporting ammunition and ammunition accessories.
The stock has been a major outperformer in 2021 with a YTD gain of more than 150%. Following the pandemic, industrial activity has been stronger than expected, benefitting chemical companies and prices.
The chemicals made by OLN are used by industries all across the economy which means the company will benefit from the recent uptick in growth. It’s also benefiting from inflation as OLN’s chemicals are essential inputs for so many necessary and important items which means it has considerable pricing power.