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 306 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 35, which is 4 points higher than the basic material sector average of 31. It passed 14 out of 38 due diligence checks and has average fundamentals. Caledonia Mining has seen its stock return 33.49% over the past year, overperforming other basic material stocks by 43 percentage points.

Caledonia Mining has an average 1 year price target of $21.00, an upside of 49.25% from Caledonia Mining's current stock price of $14.07.

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 306 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: A, Safety: B, Financials: B, and AI: B.

Pan American Silver (NYSE:PAAS) has a Due Diligence Score of 56, which is 25 points higher than the basic material sector average of 31. It passed 21 out of 38 due diligence checks and has strong fundamentals. Pan American Silver has seen its stock return 11.05% over the past year, overperforming other basic material stocks by 20 percentage points.

Pan American Silver has an average 1 year price target of $33.00, an upside of 45.95% from Pan American Silver's current stock price of $22.61.

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.

Kinross Gold (NYSE:KGC) is the #3 top basic material stock out of 306 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 Kinross Gold (NYSE:KGC) is: Value: B, Growth: C, Momentum: B, Sentiment: A, Safety: C, Financials: A, and AI: C.

Kinross Gold (NYSE:KGC) has a Due Diligence Score of 38, which is 7 points higher than the basic material sector average of 31. It passed 14 out of 38 due diligence checks and has average fundamentals. Kinross Gold has seen its stock return 72.95% over the past year, overperforming other basic material stocks by 82 percentage points.

Kinross Gold has an average 1 year price target of $16.00, an upside of 18.61% from Kinross Gold's current stock price of $13.49.

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

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:

Buenaventura Mining Co (NYSE:BVN) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 2.28%. Buenaventura Mining Co's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Buenaventura Mining Co's dividend has shown consistent growth over the last 10 years.

Buenaventura Mining Co's dividend payout ratio of 0% indicates that its dividend yield might not be sustainable for the long-term.

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 2.28%. Chemical & Mining Co Of Chile's dividend payout is not stable, having dropped more than 10% fifteen 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.

Flexible Solutions International (NYSEMKT:FSI) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 2.28%. Flexible Solutions International's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Flexible Solutions International's dividend has shown consistent growth over the last 10 years.

Flexible Solutions International's dividend payout ratio of 41.7% indicates that its dividend yield is sustainable for the long-term.

Basic material stocks were down -1.22% in the last day, and up 2.44% over the last week. Avino Silver & Gold Mines was the among the top losers in the basic materials sector, dropping -6.17% yesterday.

Avino Silver & Gold Mines shares are trading higher after HC Wainwright raised its price target on the stock from $2.2 to $2.8.

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 dropped -7.31% in the past year. It has overperformed other stocks in the basic material sector by 2 percentage points.

Fortuna Mining (NYSE:FSM) 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.

Fortuna Mining 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.

Fortuna Mining's stock has gained 2.86% in the past year. It has overperformed other stocks in the basic material sector by 12 percentage points.

Mesabi Trust (NYSE:MSB) 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.

Mesabi Trust 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.

Mesabi Trust's stock has gained 48.85% in the past year. It has overperformed other stocks in the basic material sector by 58 percentage points.

47.66% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 18.96% over the next year.

3.38% of basic material stocks have a Zen Rating of A (Strong Buy), 13.53% of basic material stocks are rated B (Buy), 52.26% are rated C (Hold), 19.92% are rated D (Sell), and 10.9% are rated F (Strong Sell).