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:

Centerra Gold (NYSE:CGAU) is the #1 top basic material stock out of 307 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 Centerra Gold (NYSE:CGAU) is: Value: B, Growth: B, Momentum: A, Sentiment: B, Safety: C, Financials: B, and AI: C.

Centerra Gold (NYSE:CGAU) has a Due Diligence Score of 38, which is 7 points higher than the basic material sector average of 31. It passed 15 out of 38 due diligence checks and has average fundamentals. Centerra Gold has seen its stock return 85.3% over the past year, overperforming other basic material stocks by 94 percentage points.

Centerra Gold has an average 1 year price target of $14.17, an upside of 22.13% from Centerra Gold's current stock price of $11.60.

Centerra Gold stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Centerra 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.

Arlo Technologies (NYSE:ARLO) is the #2 top basic material stock out of 307 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 Arlo Technologies (NYSE:ARLO) is: Value: C, Growth: A, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: B.

Arlo Technologies (NYSE:ARLO) has a Due Diligence Score of 48, which is 17 points higher than the basic material sector average of 31. It passed 15 out of 33 due diligence checks and has strong fundamentals. Arlo Technologies has seen its stock return 12.03% over the past year, overperforming other basic material stocks by 21 percentage points.

Arlo Technologies has an average 1 year price target of $24.00, an upside of 80.18% from Arlo Technologies's current stock price of $13.32.

Arlo Technologies stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Arlo Technologies, 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.

Constellium Se (NYSE:CSTM) is the #3 top basic material stock out of 307 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 Constellium Se (NYSE:CSTM) is: Value: B, Growth: A, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: B.

Constellium Se (NYSE:CSTM) has a Due Diligence Score of 38, which is 7 points higher than the basic material sector average of 31. It passed 12 out of 33 due diligence checks and has average fundamentals. Constellium Se has seen its stock return 28.23% over the past year, overperforming other basic material stocks by 37 percentage points.

Constellium Se has an average 1 year price target of $19.50, an upside of 26.62% from Constellium Se's current stock price of $15.40.

Constellium Se stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Constellium Se, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 106 basic material stocks that have issued dividends in the past year, the 3 basic material stocks with the highest dividend yields are:

Cementos Pacasmayo Saa (NYSE:CPAC) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 2.35%. 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 72.1% indicates that its dividend yield is sustainable for the long-term.

Fmc (NYSE:FMC) has an annual dividend yield of 18.2%, which is 16 percentage points higher than the basic material sector average of 2.35%. Fmc's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Fmc's dividend has shown consistent growth over the last 10 years.

Fmc's dividend payout ratio of -54.8% indicates that its high dividend yield might not be sustainable for the long-term.

Cvr Partners (NYSE:UAN) has an annual dividend yield of 12.23%, which is 10 percentage points higher than the basic material sector average of 2.35%. Cvr Partners's dividend payout is not stable, having dropped more than 10% nine 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 75.5% indicates that its high dividend yield is sustainable for the long-term.

Basic material stocks were up 2.11% in the last day, and down -1.41% over the last week. Builders Firstsource was the among the top gainers in the basic materials sector, gaining 7.14% yesterday.

Shares of homebuilders and housing-linked stocks are trading higher after NY Fed President Williams indicated he sees room for a further policy adjustment in the near term. A rate cut could help lift housing demand and construction.

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:

Fortuna Mining (NYSE:FSM) 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.

Fortuna Mining 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.

Fortuna Mining's stock has gained 64.6% in the past year. It has overperformed other stocks in the basic material sector by 73 percentage points.

Nexa Resources Sa (NYSE:NEXA) 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.

Nexa Resources Sa has a valuation score of 14, which is -10 points higher than the basic material sector average of 24. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates NEXA a Valuation Rating of "A".

Nexa Resources Sa's stock has dropped -17.45% in the past year. It has underperformed other stocks in the basic material sector by -9 percentage points.

Vale Sa (NYSE:VALE) 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.

Vale Sa 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.

Vale Sa's stock has gained 21.39% in the past year. It has overperformed other stocks in the basic material sector by 30 percentage points.

43.46% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 22.02% over the next year.

4.76% of basic material stocks have a Zen Rating of A (Strong Buy), 15.02% of basic material stocks are rated B (Buy), 53.48% are rated C (Hold), 16.48% are rated D (Sell), and 10.26% are rated F (Strong Sell).