Sectors & IndustriesBasic Materials

Best Basic Material Stocks to Buy Now (2022)

Top basic material stocks in 2022 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:

Tecnoglass (NASDAQ:TGLS) is the top basic material stock with a Zen Score of 68, which is 31 points higher than the basic material sector average of 37. It passed 27 out of 38 due diligence checks and has strong fundamentals. Tecnoglass has seen its stock lose -9% over the past year, overperforming other basic material stocks by 6 percentage points.

Tecnoglass has an average 1 year price target of $35.00, an upside of 75.61% from Tecnoglass's current stock price of $19.93.

Tecnoglass stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Tecnoglass, 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.

Ramaco Resources (NASDAQ:METC) is the second best basic material stock with a Zen Score of 65, which is 28 points higher than the basic material sector average of 37. It passed 26 out of 38 due diligence checks and has strong fundamentals. Ramaco Resources has seen its stock lose -27.51% over the past year, underperforming other basic material stocks by -12 percentage points.

Ramaco Resources has an average 1 year price target of $15.50, an upside of 71.46% from Ramaco Resources's current stock price of $9.04.

Ramaco Resources stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Ramaco Resources, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Alliance Resource Partners (NASDAQ:ARLP) is the third best basic material stock with a Zen Score of 64, which is 27 points higher than the basic material sector average of 37. It passed 24 out of 38 due diligence checks and has strong fundamentals. Alliance Resource Partners has seen its stock return 120.55% over the past year, overperforming other basic material stocks by 136 percentage points.

Alliance Resource Partners has an average 1 year price target of $22.00, a downside of -2.4% from Alliance Resource Partners's current stock price of $22.54.

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

Out of 151 basic material stocks that have issued dividends in the past year, the 3 basic material stocks with the highest dividend yields are:

Braskem Sa (NYSE:BAK) has an annual dividend yield of 33.28%, which is 30 percentage points higher than the basic material sector average of 3.73%. Braskem Sa's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Braskem Sa's dividend has shown consistent growth over the last 10 years.

Braskem Sa's dividend payout ratio of 44.2% indicates that its high dividend yield is sustainable for the long-term.

Mesabi Trust (NYSE:MSB) has an annual dividend yield of 23.99%, which is 20 percentage points higher than the basic material sector average of 3.73%. Mesabi Trust's dividend payout is not stable, having dropped more than 10% seventeen times in the last 10 years. Mesabi Trust's dividend has not shown consistent growth over the last 10 years.

Mesabi Trust's dividend payout ratio of 157.1% indicates that its high dividend yield might not be sustainable for the long-term.

Cvr Partners (NYSE:UAN) has an annual dividend yield of 18.43%, which is 15 percentage points higher than the basic material sector average of 3.73%. Cvr Partners's dividend payout is not stable, having dropped more than 10% twelve times in the last 10 years. Cvr Partners's dividend has shown consistent growth over the last 10 years.

Cvr Partners's dividend payout ratio of 42% indicates that its high dividend yield is sustainable for the long-term.

Basic material stocks were up 0.78% in the last day, and down -6.69% over the last week. Peabody Energy was the among the top gainers in the basic materials sector, gaining 9.33% yesterday.

Shares of energy companies are trading higher as the price of oil rices amid supply disruption caused by Hurricane Ian. A pullback in the US dollar has also helped lift oil prices. It was also reported that Russia will propose OPEC+ reduce output by 1 million barrels per day at the next meeting.

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

Innospec (NASDAQ:IOSP) is the most undervalued basic material stock based on WallStreetZen's Valuation Score. Innospec has a valuation score of 86, which is 51 points higher than the basic material sector average of 35. It passed 6 out of 7 valuation due diligence checks.

Innospec's stock has dropped -1.72% in the past year. It has overperformed other stocks in the basic material sector by 13 percentage points.

Northern Technologies International (NASDAQ:NTIC) is the second most undervalued basic material stock based on WallStreetZen's Valuation Score. Northern Technologies International has a valuation score of 86, which is 51 points higher than the basic material sector average of 35. It passed 6 out of 7 valuation due diligence checks.

Northern Technologies International's stock has dropped -26.2% in the past year. It has underperformed other stocks in the basic material sector by -11 percentage points.

Tecnoglass (NASDAQ:TGLS) is the third most undervalued basic material stock based on WallStreetZen's Valuation Score. Tecnoglass has a valuation score of 86, which is 51 points higher than the basic material sector average of 35. It passed 6 out of 7 valuation due diligence checks.

Tecnoglass's stock has dropped -9% in the past year. It has overperformed other stocks in the basic material sector by 6 percentage points.