Sectors & IndustriesBasic Materials

Best Basic Material Stocks to Buy Now (2024)

Top basic material stocks in 2024 ranked by overall Zen Score. See the best basic material stocks to buy now, according to analyst forecasts for the basic materials sector.

According to Zen Score, the 3 best basic material stocks to buy right now are:

Oil Dri Of America (NYSE:ODC) is the top basic material stock with a Zen Score of 63, which is 34 points higher than the basic material sector average of 29. It passed 23 out of 38 due diligence checks and has strong fundamentals. Oil Dri Of America has seen its stock return 112.1% over the past year, overperforming other basic material stocks by 86 percentage points.

Vale Sa (NYSE:VALE) is the second best basic material stock with a Zen Score of 60, which is 31 points higher than the basic material sector average of 29. It passed 22 out of 38 due diligence checks and has strong fundamentals. Vale Sa has seen its stock lose -7.6% over the past year, underperforming other basic material stocks by -34 percentage points.

Vale Sa has an average 1 year price target of $16.58, an upside of 31.09% from Vale Sa's current stock price of $12.65.

Vale Sa stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Vale Sa, 50% have issued a Strong Buy rating, 16.67% have issued a Buy, 33.33% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Ufp Industries (NASDAQ:UFPI) is the third best basic material stock with a Zen Score of 59, which is 30 points higher than the basic material sector average of 29. It passed 22 out of 38 due diligence checks and has strong fundamentals. Ufp Industries has seen its stock return 44.32% over the past year, overperforming other basic material stocks by 18 percentage points.

Ufp Industries has an average 1 year price target of $120.00, an upside of 0.35% from Ufp Industries's current stock price of $119.58.

Ufp Industries stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Ufp Industries, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 133 basic material stocks that have issued dividends in the past year, the 3 basic material stocks with the highest dividend yields are:

Consol Energy (NYSE:CEIX) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 2.31%.

Consol Energy's dividend payout ratio of 6.7% indicates that its dividend yield is sustainable for the long-term.

Alliance Resource Partners (NASDAQ:ARLP) has an annual dividend yield of 12.09%, which is 10 percentage points higher than the basic material sector average of 2.31%. Alliance Resource Partners's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Alliance Resource Partners's dividend has shown consistent growth over the last 10 years.

Alliance Resource Partners's dividend payout ratio of 61.3% indicates that its high dividend yield is sustainable for the long-term.

National Steel Co (NYSE:SID) has an annual dividend yield of 11.28%, which is 9 percentage points higher than the basic material sector average of 2.31%. National Steel Co's dividend payout is not stable, having dropped more than 10% six times in the last 10 years. National Steel Co's dividend has shown consistent growth over the last 10 years.

National Steel Co's dividend payout ratio of -860.2% indicates that its high dividend yield might not be sustainable for the long-term.

Basic material stocks were down -1.01% in the last day, and down -0.89% over the last week. Iamgold was the among the top losers in the basic materials sector, dropping -10.69% yesterday.

Iamgold shares are trading lower after the company announced a $300 million bought deal financing.

Based on WallStreetZen's Valuation Score, the 3 most undervalued basic material stocks right now are:

Methanex (NASDAQ:MEOH) is the most undervalued basic material stock based on WallStreetZen's Valuation Score. Methanex has a valuation score of 86, which is 62 points higher than the basic material sector average of 24. It passed 6 out of 7 valuation due diligence checks.

Methanex's stock has gained 22.98% in the past year. It has underperformed other stocks in the basic material sector by -3 percentage points.

Algoma Steel Group (NASDAQ:ASTL) is the second most undervalued basic material stock based on WallStreetZen's Valuation Score. Algoma Steel Group has a valuation score of 86, which is 62 points higher than the basic material sector average of 24. It passed 6 out of 7 valuation due diligence checks.

Algoma Steel Group's stock has gained 7.7% in the past year. It has underperformed other stocks in the basic material sector by -19 percentage points.

Core Molding Technologies (NYSEMKT:CMT) is the third most undervalued basic material stock based on WallStreetZen's Valuation Score. Core Molding Technologies has a valuation score of 71, which is 47 points higher than the basic material sector average of 24. It passed 5 out of 7 valuation due diligence checks.

Core Molding Technologies's stock has dropped -3.11% in the past year. It has underperformed other stocks in the basic material sector by -29 percentage points.