Sectors & IndustriesBasic Materials

Best Basic Material Stocks to Buy Now (2025)

Top basic material stocks in 2025 ranked by overall Due Diligence Score. See the best basic material stocks to buy now, according to analyst forecasts for the basic materials sector.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best basic material stocks to buy right now are:

Caledonia Mining (NYSEMKT:CMCL) is the #1 top basic material stock out of 308 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Caledonia Mining (NYSEMKT:CMCL) is: Value: B, Growth: B, Momentum: B, Sentiment: A, Safety: C, Financials: B, and AI: C.

Caledonia Mining (NYSEMKT:CMCL) has a Due Diligence Score of 33, which is 2 points higher than the basic material sector average of 31. It passed 13 out of 38 due diligence checks and has average fundamentals. Caledonia Mining has seen its stock return 101.24% over the past year, overperforming other basic material stocks by 107 percentage points.

Caledonia Mining has an average 1 year price target of $21.00, an upside of 7.91% from Caledonia Mining's current stock price of $19.46.

Caledonia Mining stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Caledonia Mining, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Pan American Silver (NYSE:PAAS) is the #2 top basic material stock out of 308 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Pan American Silver (NYSE:PAAS) is: Value: C, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: B.

Pan American Silver (NYSE:PAAS) has a Due Diligence Score of 44, which is 13 points higher than the basic material sector average of 31. It passed 17 out of 38 due diligence checks and has strong fundamentals. Pan American Silver has seen its stock return 46.74% over the past year, overperforming other basic material stocks by 52 percentage points.

Pan American Silver has an average 1 year price target of $33.00, an upside of 13.75% from Pan American Silver's current stock price of $29.01.

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

Cvr Partners (NYSE:UAN) is the #3 top basic material stock out of 308 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Cvr Partners (NYSE:UAN) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: B.

Cvr Partners (NYSE:UAN) has a Due Diligence Score of 25, which is -6 points lower than the basic material sector average of 31. Although this number is below the industry average, our proven quant model rates UAN as a "A".It passed 9 out of 38 due diligence checks and has weak fundamentals. Cvr Partners has seen its stock return 7.05% over the past year, overperforming other basic material stocks by 12 percentage points.

Out of 131 basic material stocks that have issued dividends in the past year, the 3 basic material stocks with the highest dividend yields are:

Chemical & Mining Co Of Chile (NYSE:SQM) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 2.19%. Chemical & Mining Co Of Chile's dividend payout is not stable, having dropped more than 10% sixteen times in the last 10 years. Chemical & Mining Co Of Chile's dividend has not shown consistent growth over the last 10 years.

Chemical & Mining Co Of Chile's dividend payout ratio of 8.9% indicates that its dividend yield is sustainable for the long-term.

Cementos Pacasmayo Saa (NYSE:CPAC) has an annual dividend yield of 9.17%, which is 7 percentage points higher than the basic material sector average of 2.19%. Cementos Pacasmayo Saa's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Cementos Pacasmayo Saa's dividend has shown consistent growth over the last 10 years.

Cementos Pacasmayo Saa's dividend payout ratio of 85.3% indicates that its high dividend yield is sustainable for the long-term.

Tronox Holdings (NYSE:TROX) has an annual dividend yield of 8.99%, which is 7 percentage points higher than the basic material sector average of 2.19%. Tronox Holdings's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Tronox Holdings's dividend has not shown consistent growth over the last 10 years.

Tronox Holdings's dividend payout ratio of -52.1% indicates that its high dividend yield might not be sustainable for the long-term.

Basic material stocks were down -1.3% in the last day, and down -0.96% over the last week. Sherwin Williams Co was the among the top losers in the basic materials sector, dropping -5.7% yesterday.

Sherwin-Williams shares are trading lower after Citigroup downgraded its rating from Buy to Neutral and lowered the price target on the stock from $405 to $385.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued basic material stocks right now are:

Advansix (NYSE:ASIX) is the most undervalued basic material stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Advansix has a valuation score of 43, which is 19 points higher than the basic material sector average of 24. It passed 3 out of 7 valuation due diligence checks.

Advansix's stock has gained 0.13% in the past year. It has overperformed other stocks in the basic material sector by 5 percentage points.

Vale Sa (NYSE:VALE) is the second most undervalued basic material stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Vale Sa 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.

Vale Sa's stock has dropped -16.43% in the past year. It has underperformed other stocks in the basic material sector by -11 percentage points.

Cemex Sab De CV (NYSE:CX) is the third most undervalued basic material stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Cemex Sab De CV has a valuation score of 57, which is 33 points higher than the basic material sector average of 24. It passed 4 out of 7 valuation due diligence checks.

Cemex Sab De CV's stock has gained 2.11% in the past year. It has overperformed other stocks in the basic material sector by 7 percentage points.

43.78% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 18.27% over the next year.

4.83% of basic material stocks have a Zen Rating of A (Strong Buy), 11.52% of basic material stocks are rated B (Buy), 51.3% are rated C (Hold), 22.3% are rated D (Sell), and 10.04% are rated F (Strong Sell).