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:

Centerra Gold (NYSE:CGAU) 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 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 135.26% over the past year, overperforming other basic material stocks by 134 percentage points.

Centerra Gold has an average 1 year price target of $14.17, an upside of 2.59% from Centerra Gold's current stock price of $13.81.

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.

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: A, Momentum: B, Sentiment: B, 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 65.54% over the past year, overperforming other basic material stocks by 64 percentage points.

Constellium Se has an average 1 year price target of $19.50, an upside of 7.97% from Constellium Se's current stock price of $18.06.

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.

Commercial Metals Co (NYSE:CMC) 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 Commercial Metals Co (NYSE:CMC) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: B.

Commercial Metals Co (NYSE:CMC) has a Due Diligence Score of 35, which is 4 points higher than the basic material sector average of 31. It passed 13 out of 38 due diligence checks and has average fundamentals. Commercial Metals Co has seen its stock return 29.25% over the past year, overperforming other basic material stocks by 28 percentage points.

Commercial Metals Co has an average 1 year price target of $69.44, a downside of -0.79% from Commercial Metals Co's current stock price of $70.00.

Commercial Metals Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Commercial Metals Co, 77.78% have issued a Strong Buy rating, 0% have issued a Buy, 22.22% 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:

National Steel Co (NYSE:SID) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 2.11%. National Steel Co's dividend payout is not stable, having dropped more than 10% six times in the last 10 years. National Steel Co's dividend has not shown consistent growth over the last 10 years.

National Steel Co's dividend payout ratio of -69.9% indicates that its dividend yield might not be sustainable for the long-term.

Suzano Sa (NYSE:SUZ) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 2.11%. Suzano Sa's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Suzano Sa's dividend has shown consistent growth over the last 10 years.

Suzano Sa's dividend payout ratio of 33.5% indicates that its dividend yield is sustainable for the long-term.

ICL Group (NYSE:ICL) has an annual dividend yield of N/A, which is N/A percentage points lower than the basic material sector average of 2.11%. ICL Group's dividend payout is not stable, having dropped more than 10% eleven times in the last 10 years. ICL Group's dividend has shown consistent growth over the last 10 years.

ICL Group's dividend payout ratio of 46.9% indicates that its dividend yield is sustainable for the long-term.

Basic material stocks were down -0.15% in the last day, and down -0.26% over the last week. Hallador Energy Co was the among the top losers in the basic materials sector, dropping -15.23% yesterday.

Hallador Energy shares are trading lower after the company announced an ATM offering of $100 million fdter selling $50 million.

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 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 -9.57% in the past year. It has underperformed other stocks in the basic material sector by -11 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 71, which is 49 points higher than the basic material sector average of 22. It passed 5 out of 7 valuation due diligence checks.

Vale Sa's stock has gained 39.17% in the past year. It has overperformed other stocks in the basic material sector by 38 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 146.93% in the past year. It has overperformed other stocks in the basic material sector by 146 percentage points.

42.01% of basic material stocks rated by analysts are a buy right now. On average, analysts expect basic material stocks to rise by 16.31% over the next year.

7.38% of basic material stocks have a Zen Rating of A (Strong Buy), 15.87% of basic material stocks are rated B (Buy), 49.08% are rated C (Hold), 16.24% are rated D (Sell), and 11.44% are rated F (Strong Sell).