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 331 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: A, Sentiment: A, 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 104.78% over the past year, overperforming other basic material stocks by 115 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.

Mativ Holdings (NYSE:MATV) is the #2 top basic material stock out of 331 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 Mativ Holdings (NYSE:MATV) is: Value: B, Growth: C, Momentum: C, Sentiment: A, Safety: B, Financials: B, and AI: A.

Mativ Holdings (NYSE:MATV) has a Due Diligence Score of 26, which is -5 points lower than the basic material sector average of 31. Although this number is below the industry average, our proven quant model rates MATV as a "A".It passed 9 out of 38 due diligence checks and has average fundamentals. Mativ Holdings has seen its stock lose -5.89% over the past year, overperforming other basic material stocks by 5 percentage points.

Alto Ingredients (NASDAQ:ALTO) is the #3 top basic material stock out of 331 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 Alto Ingredients (NASDAQ:ALTO) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: C.

Alto Ingredients (NASDAQ:ALTO) has a Due Diligence Score of 45, which is 14 points higher than the basic material sector average of 31. It passed 14 out of 33 due diligence checks and has strong fundamentals. Alto Ingredients has seen its stock return 211.28% over the past year, overperforming other basic material stocks by 222 percentage points.

Alto Ingredients has an average 1 year price target of $10.00, an upside of 150% from Alto Ingredients's current stock price of $4.00.

Alto Ingredients stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Alto Ingredients, 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 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 1.92%. 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 10.81%, which is 9 percentage points higher than the basic material sector average of 1.92%. 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 9.28%, which is 7 percentage points higher than the basic material sector average of 1.92%. 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 down -0.96% in the last day, and down -2.5% over the last week. Nucor was the among the top losers in the basic materials sector, dropping -6.32% yesterday.

Nucor shares are trading lower after the company issued Q3 EPS guidance below estimates.

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 165.51% in the past year. It has overperformed other stocks in the basic material sector by 176 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.

Century Aluminum Co (NASDAQ:CENX) 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.

Century Aluminum Co 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.

Century Aluminum Co's stock has gained 45.02% in the past year. It has overperformed other stocks in the basic material sector by 56 percentage points.

42.73% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 25.83% over the next year.

4.96% of basic material stocks have a Zen Rating of A (Strong Buy), 14.18% of basic material stocks are rated B (Buy), 53.9% are rated C (Hold), 19.5% are rated D (Sell), and 7.45% are rated F (Strong Sell).