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: B, Safety: C, Financials: B, and AI: C.

Caledonia Mining (NYSEMKT:CMCL) has a Due Diligence Score of 41, which is 10 points higher than the basic material sector average of 31. It passed 17 out of 38 due diligence checks and has strong fundamentals. Caledonia Mining has seen its stock return 75.87% over the past year, overperforming other basic material stocks by 84 percentage points.

Caledonia Mining has an average 1 year price target of $28.00, an upside of 2.45% from Caledonia Mining's current stock price of $27.33.

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.

Arlo Technologies (NYSE:ARLO) 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 Arlo Technologies (NYSE:ARLO) is: Value: C, Growth: A, Momentum: B, Sentiment: B, Safety: B, Financials: B, and AI: B.

Arlo Technologies (NYSE:ARLO) has a Due Diligence Score of 47, which is 16 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 21.96% over the past year, overperforming other basic material stocks by 30 percentage points.

Arlo Technologies has an average 1 year price target of $24.00, an upside of 61.83% from Arlo Technologies's current stock price of $14.83.

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.

Centerra Gold (NYSE:CGAU) 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 Centerra Gold (NYSE:CGAU) is: Value: B, Growth: B, Momentum: A, Sentiment: B, Safety: C, Financials: B, and AI: B.

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 75.54% over the past year, overperforming other basic material stocks by 84 percentage points.

Centerra Gold has an average 1 year price target of $14.17, an upside of 24.16% from Centerra Gold's current stock price of $11.41.

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.

Out of 105 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 16.58%, which is 14 percentage points higher than the basic material sector average of 2.29%. 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.

Lyondellbasell Industries Nv (NYSE:LYB) has an annual dividend yield of 12.6%, which is 10 percentage points higher than the basic material sector average of 2.29%. 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 -144.5% indicates that its high dividend yield might not be sustainable for the long-term.

Huntsman (NYSE:HUN) has an annual dividend yield of 12.22%, which is 10 percentage points higher than the basic material sector average of 2.29%. 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 -52.4% indicates that its high dividend yield might not be sustainable for the long-term.

Basic material stocks were up 1.36% in the last day, and down -2.21% over the last week. Celanese was the among the top gainers in the basic materials sector, gaining 14.37% yesterday.

Celanese shares are trading higher after the company reported better-than-expected Q3 adjusted EPS 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:

Advansix (NYSE:ASIX) 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.

Advansix 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.

Advansix's stock has dropped -50.56% in the past year. It has underperformed other stocks in the basic material sector by -42 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 -8 points higher than the basic material sector average of 22. 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 -32.86% in the past year. It has underperformed other stocks in the basic material sector by -25 percentage points.

Caledonia Mining (NYSEMKT:CMCL) 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.

Caledonia Mining 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.

Caledonia Mining's stock has gained 75.87% in the past year. It has overperformed other stocks in the basic material sector by 84 percentage points.

43.33% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 19.31% over the next year.

6.88% of basic material stocks have a Zen Rating of A (Strong Buy), 13.77% of basic material stocks are rated B (Buy), 53.62% are rated C (Hold), 14.86% are rated D (Sell), and 10.87% are rated F (Strong Sell).