Investing.com - Citi released an analysis of positioning in US chemical stocks using data from its Quant team, identifying the most crowded long and short positions across its coverage universe. The analysis examines five factors including crowding metrics, relative historical valuation, short interest ratio, sentiment, and macro exposure.

Ecovyst (NYSE: ECVT), Linde (NYSE: LIN), and RPM International (NYSE: RPM) remain the most crowded long positions within Citi's coverage. Ecolab (NYSE: ECL) saw an 11% week-over-week gain in long crowding primarily driven by lower short interest, while H.B. Fuller (NYSE: FUL) experienced a 9% week-over-week increase in its long crowding score due to lower short interest and improved sentiment. Average long crowding for Citi's coverage declined 3% week-over-week.

PPG Industries (NYSE: PPG), Sherwin-Williams (NYSE: SHW), and Eastman Chemical (NYSE: EMN) continue to be the most crowded short positions within Citi's coverage. Average short crowding for the coverage universe rose 4% week-over-week, reversing the prior week's 2% decline.

Axalta Coating Systems (NYSE: AXTA), Sherwin-Williams, and H.B. Fuller are the most debated names based on the sum of long and short composite scores. Big movers for the week included Ecolab up 10.5%, H.B. Fuller up 8.9%, DuPont (NYSE: DD) up 8.8%, Sherwin-Williams up 5.9%, LyondellBasell (NYSE: LYB) down 7.9%, Axalta down 12.2%, Albemarle (NYSE: ALB) down 13.8%, Dow (NYSE: DOW) down 19.8%, and Air Products (NYSE: APD) down 21.1%.

Citi noted the crowding composite data is not intended as a buy or sell signal but serves as a tool for investment consideration. The firm identified Albemarle, DuPont, Ecovyst, Linde, and RPM as consensus longs with long crowding above 50% and short crowding below 50%, while the majority of coverage falls into the consensus short camp.