Sectors & IndustriesBasic Materials

Best Basic Material Stocks to Buy Now (2026)

Top basic material stocks in 2026 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:

Sasol (NYSE:SSL) is the #1 top basic material stock out of 329 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

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

Sasol (NYSE:SSL) has a Due Diligence Score of 29, which is -2 points lower than the basic material sector average of 31. Although this number is below the industry average, our proven quant model rates SSL as a "A".It passed 11 out of 38 due diligence checks and has average fundamentals. Sasol has seen its stock return 77.57% over the past year, overperforming other basic material stocks by 92 percentage points.

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

Sibanye Stillwater (NYSE:SBSW) is the #2 top basic material stock out of 329 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Sibanye Stillwater (NYSE:SBSW) is: Value: B, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: C.

Sibanye Stillwater (NYSE:SBSW) has a Due Diligence Score of 16, which is -15 points lower than the basic material sector average of 31. Although this number is below the industry average, our proven quant model rates SBSW as a "A".It passed 5 out of 38 due diligence checks and has weak fundamentals. Sibanye Stillwater has seen its stock return 58.29% over the past year, overperforming other basic material stocks by 73 percentage points.

Sibanye Stillwater has an average 1 year price target of $14.00, an upside of 9.46% from Sibanye Stillwater's current stock price of $12.79.

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

Kronos Worldwide (NYSE:KRO) is the #3 top basic material stock out of 329 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Kronos Worldwide (NYSE:KRO) is: Value: C, Growth: A, Momentum: B, Sentiment: A, Safety: B, Financials: C, and AI: A.

Kronos Worldwide (NYSE:KRO) has a Due Diligence Score of 20, which is -11 points lower than the basic material sector average of 31. Although this number is below the industry average, our proven quant model rates KRO as a "A".It passed 7 out of 38 due diligence checks and has weak fundamentals. Kronos Worldwide has seen its stock return 37.75% over the past year, overperforming other basic material stocks by 52 percentage points.

Kronos Worldwide has an average 1 year price target of $9.00, an upside of 6.76% from Kronos Worldwide's current stock price of $8.43.

Kronos Worldwide stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Kronos Worldwide, 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.

Out of 141 basic material stocks that have issued dividends in the past year, the 3 basic material stocks with the highest dividend yields are:

Posco Holdings (NYSE:PKX) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 1.75%. Posco Holdings's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Posco Holdings's dividend has shown consistent growth over the last 10 years.

Posco Holdings's dividend payout ratio of 40% indicates that its dividend yield is sustainable for the long-term.

Cvr Partners (NYSE:UAN) has an annual dividend yield of 11.06%, which is 9 percentage points higher than the basic material sector average of 1.75%. Cvr Partners's dividend payout is not stable, having dropped more than 10% eight 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 81.1% indicates that its high dividend yield is sustainable for the long-term.

Alliance Resource Partners (NASDAQ:ARLP) has an annual dividend yield of 9.06%, which is 7 percentage points higher than the basic material sector average of 1.75%. Alliance Resource Partners's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Alliance Resource Partners's dividend has shown consistent growth over the last 10 years.

Alliance Resource Partners's dividend payout ratio of 117.1% indicates that its high dividend yield might not be sustainable for the long-term.

Basic material stocks were up 0.11% in the last day, and down -0.75% over the last week. Quanex Building Products was the among the top gainers in the basic materials sector, gaining 22.23% yesterday.

Quanex Building Products shares are trading higher after the company reported better-than-expected Q3 financial results.

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:

Nexa Resources Sa (NYSE:NEXA) 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.

Nexa Resources Sa 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.

Nexa Resources Sa's stock has gained 183.95% in the past year. It has overperformed other stocks in the basic material sector by 198 percentage points.

Oceanagold (NYSE:OGC) 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.

Oceanagold 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.

Iamgold (NYSE:IAG) 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.

Iamgold 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.

Iamgold's stock has gained 116.49% in the past year. It has overperformed other stocks in the basic material sector by 131 percentage points.

41.85% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 17.93% over the next year.

4.98% of basic material stocks have a Zen Rating of A (Strong Buy), 14.59% of basic material stocks are rated B (Buy), 54.09% are rated C (Hold), 17.44% are rated D (Sell), and 8.9% are rated F (Strong Sell).