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 310 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: A, Growth: B, Momentum: A, Sentiment: C, Safety: C, Financials: B, and AI: C.

Caledonia Mining (NYSEMKT:CMCL) has a Due Diligence Score of 45, which is 15 points higher than the basic material sector average of 30. It passed 18 out of 38 due diligence checks and has strong fundamentals. Caledonia Mining has seen its stock return 93.64% over the past year, overperforming other basic material stocks by 96 percentage points.

Caledonia Mining has an average 1 year price target of $28.00, a downside of -14.03% from Caledonia Mining's current stock price of $32.57.

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.

New Gold (NYSEMKT:NGD) is the #2 top basic material stock out of 310 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 New Gold (NYSEMKT:NGD) is: Value: B, Growth: A, Momentum: B, Sentiment: A, Safety: C, Financials: C, and AI: C.

New Gold (NYSEMKT:NGD) has a Due Diligence Score of 31, which is 1 points higher than the basic material sector average of 30. It passed 10 out of 33 due diligence checks and has average fundamentals. New Gold has seen its stock return 113.29% over the past year, overperforming other basic material stocks by 116 percentage points.

New Gold has an average 1 year price target of $9.50, an upside of 47.98% from New Gold's current stock price of $6.42.

New Gold stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering New Gold, 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.

Ingevity (NYSE:NGVT) is the #3 top basic material stock out of 310 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 Ingevity (NYSE:NGVT) is: Value: B, Growth: B, Momentum: B, Sentiment: B, Safety: C, Financials: B, and AI: C.

Ingevity (NYSE:NGVT) has a Due Diligence Score of 13, which is -17 points lower than the basic material sector average of 30. Although this number is below the industry average, our proven quant model rates NGVT as a "A".It passed 4 out of 33 due diligence checks and has weak fundamentals. Ingevity has seen its stock return 72.83% over the past year, overperforming other basic material stocks by 75 percentage points.

Ingevity has an average 1 year price target of $58.00, an upside of 3.87% from Ingevity's current stock price of $55.84.

Ingevity stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Ingevity, 0% have issued a Strong Buy rating, 50% 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 110 basic material stocks that have issued dividends in the past year, the 3 basic material stocks with the highest dividend yields are:

Huntsman (NYSE:HUN) has an annual dividend yield of 12.25%, which is 10 percentage points higher than the basic material sector average of 2.19%. Huntsman's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Huntsman's dividend has shown consistent growth over the last 10 years.

Huntsman's dividend payout ratio of -51% indicates that its high dividend yield might not be sustainable for the long-term.

Tronox Holdings (NYSE:TROX) has an annual dividend yield of 12.04%, which is 10 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% two 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 -31.4% indicates that its high dividend yield might not be sustainable for the long-term.

Lyondellbasell Industries Nv (NYSE:LYB) has an annual dividend yield of 11.99%, which is 10 percentage points higher than the basic material sector average of 2.19%. Lyondellbasell Industries Nv's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Lyondellbasell Industries Nv's dividend has shown consistent growth over the last 10 years.

Lyondellbasell Industries Nv's dividend payout ratio of 691% indicates that its high dividend yield might not be sustainable for the long-term.

Basic material stocks were down -1.92% in the last day, and down -4.24% over the last week. Usa Rare Earth was the among the top losers in the basic materials sector, dropping -8.49% yesterday.

Shares of rare earth mineral-related stocks are trading lower. Earlier this week, the US and Australia signed a deal that would boost supplies of rare earths and other critical metals.

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 57, which is 34 points higher than the basic material sector average of 23. It passed 4 out of 7 valuation due diligence checks.

Fortuna Mining's stock has gained 48.35% in the past year. It has overperformed other stocks in the basic material sector by 51 percentage points.

Suncoke Energy (NYSE:SXC) 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.

Suncoke Energy has a valuation score of 43, which is 20 points higher than the basic material sector average of 23. It passed 3 out of 7 valuation due diligence checks.

Suncoke Energy's stock has dropped -5.68% in the past year. It has underperformed other stocks in the basic material sector by -3 percentage points.

Advansix (NYSE:ASIX) 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.

Advansix has a valuation score of 71, which is 48 points higher than the basic material sector average of 23. It passed 5 out of 7 valuation due diligence checks.

Advansix's stock has dropped -33.23% in the past year. It has underperformed other stocks in the basic material sector by -31 percentage points.

42.72% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 15.38% over the next year.

6.16% of basic material stocks have a Zen Rating of A (Strong Buy), 14.13% of basic material stocks are rated B (Buy), 53.99% are rated C (Hold), 15.94% are rated D (Sell), and 9.78% are rated F (Strong Sell).