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:

Cvr Partners (NYSE:UAN) is the #1 top basic material stock out of 309 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 Cvr Partners (NYSE:UAN) is: Value: A, Growth: B, Momentum: B, Sentiment: C, Safety: C, Financials: B, and AI: C.

Cvr Partners (NYSE:UAN) has a Due Diligence Score of 53, which is 22 points higher than the basic material sector average of 31. It passed 19 out of 38 due diligence checks and has strong fundamentals. Cvr Partners has seen its stock return 37.39% over the past year, overperforming other basic material stocks by 44 percentage points.

Constellium Se (NYSE:CSTM) is the #2 top basic material stock out of 309 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: A, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: A.

Constellium Se (NYSE:CSTM) has a Due Diligence Score of 38, which is 7 points higher than the basic material sector average of 31. It passed 12 out of 33 due diligence checks and has average fundamentals. Constellium Se has seen its stock return 33.99% over the past year, overperforming other basic material stocks by 41 percentage points.

Constellium Se has an average 1 year price target of $19.50, an upside of 24.6% from Constellium Se's current stock price of $15.65.

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

Arlo Technologies (NYSE:ARLO) is the #3 top basic material stock out of 309 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: C, Financials: B, and AI: C.

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 31.5% over the past year, overperforming other basic material stocks by 38 percentage points.

Arlo Technologies has an average 1 year price target of $24.00, an upside of 59.26% from Arlo Technologies's current stock price of $15.07.

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.

Out of 106 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 17.01%, which is 15 percentage points higher than the basic material sector average of 2.24%. 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 11.91%, which is 10 percentage points higher than the basic material sector average of 2.24%. 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 11.42%, which is 9 percentage points higher than the basic material sector average of 2.24%. 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 down -1.59% in the last day, and up 1.36% over the last week. Nova Minerals was the among the top losers in the basic materials sector, dropping -14.47% yesterday.

Shares of precious metal-related stocks are trading lower amid overall market weakness. The commodity may be weighed down by recent Federal Reserve policymakers' hawkish comments about an additional rate cut in December.

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:

Fortuna Mining (NYSE:FSM) 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.

Fortuna Mining has a valuation score of 57, which is 35 points higher than the basic material sector average of 22. It passed 4 out of 7 valuation due diligence checks.

Fortuna Mining's stock has gained 85.02% in the past year. It has overperformed other stocks in the basic material sector by 92 percentage points.

Vale Sa (NYSE:VALE) 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.

Vale Sa has a valuation score of 57, which is 35 points higher than the basic material sector average of 22. It passed 4 out of 7 valuation due diligence checks.

Vale Sa's stock has gained 25.18% in the past year. It has overperformed other stocks in the basic material sector by 32 percentage points.

Nexa Resources Sa (NYSE:NEXA) 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.

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 -16.67% in the past year. It has underperformed other stocks in the basic material sector by -10 percentage points.

42.99% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 19.85% over the next year.

5.09% of basic material stocks have a Zen Rating of A (Strong Buy), 15.64% of basic material stocks are rated B (Buy), 53.09% are rated C (Hold), 16% are rated D (Sell), and 10.18% are rated F (Strong Sell).