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:

Perma Pipe International Holdings (NASDAQ:PPIH) is the #1 top basic material stock out of 311 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 Perma Pipe International Holdings (NASDAQ:PPIH) is: Value: B, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: C.

Perma Pipe International Holdings (NASDAQ:PPIH) has a Due Diligence Score of 46, which is 18 points higher than the basic material sector average of 28. It passed 15 out of 33 due diligence checks and has strong fundamentals. Perma Pipe International Holdings has seen its stock return 126.75% over the past year, overperforming other basic material stocks by 108 percentage points.

Constellium Se (NYSE:CSTM) is the #2 top basic material stock out of 311 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: B, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: B.

Constellium Se (NYSE:CSTM) has a Due Diligence Score of 48, which is 20 points higher than the basic material sector average of 28. It passed 16 out of 33 due diligence checks and has strong fundamentals. Constellium Se has seen its stock return 120.77% over the past year, overperforming other basic material stocks by 102 percentage points.

Constellium Se has an average 1 year price target of $29.00, an upside of 17.17% from Constellium Se's current stock price of $24.75.

Constellium Se stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Constellium Se, 75% have issued a Strong Buy rating, 25% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Galiano Gold (NYSEMKT:GAU) is the #3 top basic material stock out of 311 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 Galiano Gold (NYSEMKT:GAU) is: Value: B, Growth: A, Momentum: B, Sentiment: B, Safety: D, Financials: C, and AI: C.

Galiano Gold (NYSEMKT:GAU) has a Due Diligence Score of 16, which is -12 points lower than the basic material sector average of 28. Although this number is below the industry average, our proven quant model rates GAU as a "A".It passed 5 out of 33 due diligence checks and has weak fundamentals. Galiano Gold has seen its stock return 170.69% over the past year, overperforming other basic material stocks by 152 percentage points.

Galiano Gold has an average 1 year price target of $4.25, an upside of 34.49% from Galiano Gold's current stock price of $3.16.

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

Out of 101 basic material stocks that have issued dividends in the past year, the 3 basic material stocks with the highest dividend yields are:

Fmc (NYSE:FMC) has an annual dividend yield of 12.96%, which is 11 percentage points higher than the basic material sector average of 1.95%. Fmc's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Fmc's dividend has not shown consistent growth over the last 10 years.

Fmc's dividend payout ratio of -10.2% indicates that its high dividend yield might not be sustainable for the long-term.

Alliance Resource Partners (NASDAQ:ARLP) has an annual dividend yield of 9.43%, which is 7 percentage points higher than the basic material sector average of 1.95%. 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 104.2% indicates that its high dividend yield might not be sustainable for the long-term.

Westlake Chemical Partners (NYSE:WLKP) has an annual dividend yield of 8.52%, which is 7 percentage points higher than the basic material sector average of 1.95%. Westlake Chemical Partners's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Westlake Chemical Partners's dividend has shown consistent growth over the last 10 years.

Westlake Chemical Partners's dividend payout ratio of 136.5% indicates that its high dividend yield might not be sustainable for the long-term.

Basic material stocks were down -2.09% in the last day, and down -7.08% over the last week. Cleveland Cliffs was the among the top losers in the basic materials sector, dropping -2.85% yesterday.

Shares of base metal-related companies are trading lower as investors rotate out of the industrial commodity amid ongoing conflict in the Middle East.

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:

Cabot (NYSE:CBT) 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.

Cabot has a valuation score of 43, which is 21 points higher than the basic material sector average of 22. It passed 3 out of 7 valuation due diligence checks.

Cabot's stock has dropped -19.36% in the past year. It has underperformed other stocks in the basic material sector by -38 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 71, which is 49 points higher than the basic material sector average of 22. It passed 5 out of 7 valuation due diligence checks.

Fortuna Mining's stock has gained 145.36% in the past year. It has overperformed other stocks in the basic material sector by 127 percentage points.

Ero Copper (NYSE:ERO) 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.

Ero Copper has a valuation score of 71, which is 49 points higher than the basic material sector average of 22. It passed 5 out of 7 valuation due diligence checks.

Ero Copper's stock has gained 138.58% in the past year. It has overperformed other stocks in the basic material sector by 120 percentage points.

46.95% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 12.8% over the next year.

6.23% of basic material stocks have a Zen Rating of A (Strong Buy), 20.15% of basic material stocks are rated B (Buy), 48.35% are rated C (Hold), 16.85% are rated D (Sell), and 8.42% are rated F (Strong Sell).