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 289 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 101.9% over the past year, overperforming other basic material stocks by 111 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.

Methanex (NASDAQ:MEOH) is the #2 top basic material stock out of 289 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 Methanex (NASDAQ:MEOH) is: Value: A, Growth: A, Momentum: B, Sentiment: B, Safety: C, Financials: B, and AI: A.

Methanex (NASDAQ:MEOH) has a Due Diligence Score of 39, which is 8 points higher than the basic material sector average of 31. It passed 15 out of 38 due diligence checks and has average fundamentals. Methanex has seen its stock return 79.12% over the past year, overperforming other basic material stocks by 89 percentage points.

Methanex has an average 1 year price target of $73.75, an upside of 10.92% from Methanex's current stock price of $66.49.

Methanex stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Methanex, 25% have issued a Strong Buy rating, 25% have issued a Buy, 50% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Valhi (NYSE:VHI) is the #3 top basic material stock out of 289 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 Valhi (NYSE:VHI) is: Value: A, Growth: B, Momentum: B, Sentiment: C, Safety: C, Financials: C, and AI: A.

Valhi (NYSE:VHI) 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 VHI as a "A".It passed 11 out of 38 due diligence checks and has average fundamentals. Valhi has seen its stock return 19.97% over the past year, overperforming other basic material stocks by 29 percentage points.

Out of 120 basic material stocks that have issued dividends in the past year, the 3 basic material stocks with the highest dividend yields are:

Cvr Partners (NYSE:UAN) has an annual dividend yield of 9.38%, which is 7 percentage points higher than the basic material sector average of 1.99%. 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 144% indicates that its high dividend yield might not be sustainable for the long-term.

Sibanye Stillwater (NYSE:SBSW) has an annual dividend yield of 7.68%, which is 6 percentage points higher than the basic material sector average of 1.99%. Sibanye Stillwater's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Sibanye Stillwater's dividend has shown consistent growth over the last 10 years.

Sibanye Stillwater's dividend payout ratio of -59% 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 6.73%, which is 5 percentage points higher than the basic material sector average of 1.99%. 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 112.9% indicates that its high dividend yield might not be sustainable for the long-term.

Basic material stocks were up 3.02% in the last day, and up 1% over the last week. IMC Rare Earths was the among the top gainers in the basic materials sector, gaining 29.49% yesterday.

Shares of rare earth mineral and critical metal-related companies are trading lower as the sector pulls back from recent strength. Hotter-than-expected inflation data and Fed Governor Waller’s comments on a potential 50bps December rate hike are pushing up yields, pressuring commodities.

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:

Century Aluminum Co (NASDAQ:CENX) 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.

Century Aluminum Co has a valuation score of 57, which is 33 points higher than the basic material sector average of 24. It passed 4 out of 7 valuation due diligence checks.

Century Aluminum Co's stock has gained 13.34% in the past year. It has overperformed other stocks in the basic material sector by 23 percentage points.

Sibanye Stillwater (NYSE:SBSW) 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.

Sibanye Stillwater has a valuation score of 14, which is -10 points higher than the basic material sector average of 24. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates SBSW a Valuation Rating of "A".

Sibanye Stillwater's stock has dropped -13.02% in the past year. It has underperformed other stocks in the basic material sector by -4 percentage points.

Methanex (NASDAQ:MEOH) 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.

Methanex has a valuation score of 57, which is 33 points higher than the basic material sector average of 24. It passed 4 out of 7 valuation due diligence checks.

Methanex's stock has gained 79.12% in the past year. It has overperformed other stocks in the basic material sector by 89 percentage points.

43.23% of basic material stocks rated by analysts are a strong buy right now. On average, analysts expect basic material stocks to rise by 20.68% over the next year.

4.56% of basic material stocks have a Zen Rating of A (Strong Buy), 13.28% of basic material stocks are rated B (Buy), 54.36% are rated C (Hold), 18.67% are rated D (Sell), and 9.13% are rated F (Strong Sell).