The U.S. plastics industry is expected to grow rapidly over the next decade, fueled by cheap and abundant shale natural gas that's made it more competitive with overseas markets, according to a report by economists at the American Chemistry Council (ACC).

After battling strong headwinds in 2013, chemical stocks have begun to bounce back this year driven in large part by the surging shale energy boom and a booming North American market. While any downturn in the economy could weigh on this cyclical sector, market dynamics and management strategies look poised to reward investors with performance gains and respectable dividend yields.