Being such a useful material, the rubber industry is on track to grow even bigger as rubber-adjacent businesses such as tire companies and automakers expand.
But what are some of the best rubber stocks to buy now? Check out our list below.
Best Rubber Stocks To Add
Goodyear Tire & Rubber Co (NASDAQ: GT)
Goodyear Tires and Rubber Co. is a renowned American tire manufacturing company founded in 1898 in Akron, Ohio.
The company has numerous subsidiaries worldwide and is known for producing high-quality tires for various vehicles, including cars, airplanes, trucks, and bicycles.
In 2021, the company made headlines in the rubber industry by acquiring Cooper Tire & Co. for $2.8 billion.
The acquisition further strengthens Goodyear’s position in the tire market, especially in the light truck and SUV segments, and expands its presence in Asia and Latin America.
Goodyear Tires and Rubber Co.’s stock roughly trades at $10.30 per share as of March.
The corporation has a $2.91 billion market cap value, and according to its most recent financial report from 2022, its current annual revenue is $20.8 billion.
Trinseo PLC (NYSE: TSE)
Trinseo PLC is a global materials company that produces and markets a diverse range of plastics, latex binders, and synthetic rubber.
Trinseo was founded in 2010 as a spin-off from Dow Chemical Company and was formerly known as Styron.
The company’s headquarters is in Berwyn, Pennsylvania, and it has manufacturing sites in 17 countries, employing approximately 2,500 people worldwide.
Industries like the automotive, consumer electronics, construction, and medical sector use Trinseo’s products.
In line with the company’s drive for sustainability, it has set a goal of reducing its greenhouse gas emissions by 50% by 2030.
In 2020, Trinseo was named to the Dow Jones Sustainability Index (DJSI) North America for the ninth consecutive year, highlighting its commitment to sustainability and responsible business practices.
Trinseo is roughly trading on the NYSE at $20.10 per share, with a market capitalization of $0.703 billion.
Investors also stand a chance to earn dividends as TSE offers an annual dividend yield of 2.79% with a $0.56 annual payout.
Its consistent presence in the Dow Jones Sustainability Index and commitment to reducing greenhouse gas emissions alone indicate that Trinseo PLC is a company to watch in the future.
Carlisle Companies (NYSE: CSL)
Carlisle Companies manufactures rubber and plastics products in three key areas: construction materials, transportation products, and general industry, including food service plastics.
Its products are distributed globally, with operations in North America, Europe, Asia, and Australia.
Carlisle Companies is roughly trading at $273.23 as of March, with a market cap of $12.13 billion. It offers an annual dividend yield of 1.26% and an annual payout of $1.50.
The company maintains a P/E ratio of approximately 13.48.
The company’s revenue in 2021 increased by 21.17% compared to 2020, reaching around $4.8 billion, while the number of employees globally exceeded 16,000.
In 2022, the company’s estimated annual revenue skyrocketed to $6.6 billion, a remarkable 37.5% increase from the previous year.
Based on expert projections, the company expects to maintain its upward trajectory, with a projected growth of 12.64% by the end of 2023.
Titan International (NYSE: TWI)
Titan International Inc. was established in 1890 and is based in Quincy, Illinois.
Titan International does not manufacture tires for cars or other on-road vehicles, unlike some companies on this list.
Instead, its primary customers are OEMs like Deere, Caterpillar, and AGCO, which manufacture equipment requiring off-highway wheels and tires.
These customers have used Titan International’s products in several high-profile projects, including constructing the Panama Canal and renovating the Golden Gate Bridge.
Titan International roughly trades at $11.77 on the NYSE, with a market cap of $0.74 billion. The company currently does not offer dividends.
The company continues to expand, with manufacturing facilities in the United States, Canada, Brazil, and Europe, and its products are sold in more than 120 countries worldwide.
Michelin (OTCMKTS: MGDDF)
Michelin is a French tire manufacturer established in 1889 under Compagnie Generale des Establissementse Micheline CSA.
It is considered one of the top tire manufacturers in the world, only surpassed by Bridgestone.
Michelin is known for its iconic logo Bibendum, or the Michelin Man, which has been used since 1898 and is one of the world’s oldest and most recognizable trademarks.
The company has a history of innovation and has been responsible for several tire-related inventions, including the radial tire, which revolutionized the tire industry in the 1940s.
In 2022, Michelin reported an annual revenue of $30.4 billion, an increase of approximately $5.1 billion from the previous year. The company expects a 5.75% revenue growth in 2023.
Michelin trades at approximately $30 on over-the-counter markets, with a dividend yield of 4.45% and an annual payout of $1.34. Its market capitalization is approximately $21.5 billion.
Even though the tire market is currently saturated, Michelin’s long-standing reputation for quality and innovation ensures that it remains a strong contender in the industry.
Proto Labs (NYSE: PRLB)
Founded in 1999 and based in Maple Plain, Minnesota, Proto Labs is a leading manufacturer of rubber, metal, and commercial plastics manufacturer.
Unlike other companies, Proto Labs utilizes advanced technologies, such as 3D printing, CNC machining, and injection molding, to cater to various industries like aerospace, automotive, medical, and electronics.
Their primary focus revolves around quickly and affordably manufacturing products using injection molding and making intricate, custom parts with the help of advanced 3D printing technology.
With a market cap of around $843 million, Proto Labs has established itself as an innovative force in the manufacturing space.
As of March 2023, its shares are trading on the New York Stock Exchange at around $31.
Bridgestone Corporation (OTCMKTS: BRDCY)
Bridgestone Corporation, a Japanese company, is considered the world’s largest tire and rubber company.
Its operations span more than 150 countries with over 140 manufacturing facilities around the globe.
The company is known for producing a wide range of tires for cars, motorcycles, trucks, buses, and agricultural and industrial vehicles.
Aside from tires, Bridgestone also produces various rubber-based products, such as industrial rubber and chemical products.
It has a reputation for innovative tire technologies, such as Run-Flat tires that allow drivers to continue driving even with a punctured tire and airless tires that eliminate the need for air pressure.
In 2022, the company’s annual revenue was $24.3 billion, representing a decline from the previous year’s figure of $29.54 billion.
However, experts have forecasted a promising 62.5% growth in the company’s annual revenue for 2023.
Bridgestone Corporation has a market capitalization of $27.58 billion, which attests to the company’s remarkable success.
As of March, it roughly trades at $19.20 on over-the-counter markets.
Its vast global presence and reputation for innovation make it a smart and more practical choice for investors looking to buy stocks in the rubber industry.
Sumitomo (OTCMKTS: SMTUF)
Sumitomo Rubber Industries is a Japanese multinational company established in 1909 by the Sumitomo Group.
The company produces tires, sporting goods, and industrial rubber products.
It is currently the fifth largest tire manufacturer in the world, with a global market share of around 5%, producing tires for various vehicles, including cars, trucks, buses, and motorcycles, as well as specialized tires for different markets.
Sumitomo Rubber Industries owns well-known tire brands like Dunlop, Falken, and Sumitomo tires.
The company has a sporting goods division known as SRIXON, which produces a range of sporting goods like golf clubs, golf balls, tennis rackets, and soccer balls.
Sumitomo Rubber Industries has over 34,000 employees worldwide and operates in over 50 countries.
The company has a market cap of approximately $2.3 billion with a stock price of $9.20 on over-the-counter markets.
It has a dividend payout ratio of 0.57. Given its dividend yield of 5.37%, the company’s annual dividend payout roughly amounts to $0.9.
Myers Industries Inc. (NYSE: MYE)
Myers Industries is a manufacturing company that produces a range of rubber and plastic products.
Since its inception in 1933, Myers Industries has firmly stuck its roots in various industries, such as the automotive industry, where it produces polymer products such as rubber tires for automakers.
In addition to its work in the automotive industry, Myers also produces bulk containers, storage solutions, and reusable plastic packaging for storage companies and everyday end-users.
With a market cap of approximately $751 million, Myers Industries is a noteworthy player in the rubber and plastic market.
As of March 2023, its share price sits at $20 per share, with an average dividend yield of 1.79% and an annual payout of approximately $2.63%.
Investing in Myers Industries can provide exposure to the growing demand for rubber and polymer products across multiple industries, making it an attractive option for investors seeking to capitalize on the rubber sector’s growth potential.
FAQS
What Is The Best Way To Invest In Rubber?
You could buy futures contracts if you’d like to invest in rubber directly. Alternatively, you can simply buy the stocks of rubber companies.
Who Is The Biggest Manufacturer Of Rubber?
Thailand is currently believed to be the biggest manufacturer of rubber in the world. In 2021, the country was responsible for 35% of the world’s rubber production.
Final Thoughts
Rubber is one of the most widely used raw materials in the world. It is used to produce industrial equipment and mining equipment such as hoses, valves, conveyor belts, and more.
And given that the rubber industry is projected to grow even bigger, investors could get in on the action now with the best rubber stocks discussed in this list.
But as always, be sure to do your research and make well-informed investment decisions.
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