I’m on the hunt for the very best share to purchase for 2025 and past, and I’m tempted by one I critically thought of snapping up final July.

The corporate’s FTSE 100-listed speciality chemical compounds producer Croda Worldwide (LSE: CRDA). Its shares have slumped 65% during the last three years, and 28% over 12 months.

These days, I’ve made a behavior of shopping for high blue-chips which have fallen out of favour within the hope of choosing up a cut price. But this isn’t a surefire technique. Falling knives have a behavior of constant their descent. So what’s up with Croda?

Can the share price lastly recuperate? 

Croda was a type of shares that boomed through the pandemic, as prospects constructed up their stockpiles of important chemical compounds. Vaccine makers had been notably voracious, as a result of they depend on its lipids.

When the pandemic eased, the shopping for stopped. As a substitute of constructing shares, prospects wanted to work them down. Full-year 2023 gross sales fell 11% as prospects lowered stock ranges. Adjusted revenue earlier than tax crashed 33% to £308.8m.

Destocking has been a “prolonged” course of, in accordance with the board. It’s forecasting that adjusted pre-tax income shall be even decrease in 2024, someplace between £260m and £280m.

The share price has additionally been punished by the rising power of the pound, relative to the US greenback and euro. That’s anticipated to knock a thumping £14m off full-year income, properly above the board’s authentic estimate of £5m.

Q3 industrial specialties gross sales rose a wholesome 14% to £50m, however client care division gross sales edged up simply 5% to £228m and life sciences gross sales rose simply 3% to £129m. I’m not satisfied up to now.

This FTSE 100 inventory’s a Dividend Aristocrat

Croda shares supply one good factor. The corporate’s elevated its dividend each single 12 months for greater than three a long time. This can be a true Dividend Aristocrat.

But in 2023, the board lifted the full-year payout by lower than 1%, from 108p per share to 109p. Regardless of that – and the massive share price drop – it yields a modest 3.29%.

Right here’s one other shock. Croda’s comparatively costly, buying and selling at 19.8 instances earnings. Earnings have been falling together with the share price. Nonetheless, again in July, it was even pricier, buying and selling at 33.5 instances earnings. So it’s shifting in direction of cut price territory.

I’m glad I didn’t purchase Croda shares six months’ in the past. I’d be down 18% if I had. However I now assume it’s price contemplating for long-term buyers who like cut price looking, however are keen to just accept some short-term volatility and losses.

Gross sales might choose up as de-stocking lastly attracts to an in depth. What the pound does is anyone’s guess. I’ve acquired no thought.

The 14 analysts providing one-year share price forecasts have produced a median goal of simply over 4,405p. If right, that’s a bumper improve of 33% from in the present day’s 3,300p. Croda might not be the easiest FTSE 100 share to purchase in the present day, however I can’t see many higher.

This time I’ll purchase it, as quickly as I’ve the money.