Metals stocks give investors exposure to the raw materials that power the global economy. These companies mine, process, and transform metals that are essential to everything from construction and manufacturing to technology and transportation.
The sector spans a wide range of businesses. Some companies focus on precious metals like gold, silver, platinum, and palladium. Others produce industrial metals such as copper, iron ore, and aluminum, or turn raw materials into higher-value products, such as steel. Many metals companies operate integrated businesses that blur the line between mining and manufacturing.
Because metals touch so many industries, the sector offers a mix of growth, income, and diversification opportunities, along with the volatility that comes with commodity exposure. Below, we take a closer look at how metals stocks work and which ones stand out for investors today.
Best metals stocks in 2026
A handful of metals companies stand out as leaders in the industry by focusing on keeping costs down to maximize the value of the metals they produce. Here are five top metal stocks worthy of investor consideration:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Wheaton Precious Metals (NYSE:WPM) | $65.7 billion | 0.48% | Metals and Mining |
| Nucor (NYSE:NUE) | $48.8 billion | 1.04% | Metals and Mining |
| Rio Tinto Group (NYSE:RIO) | $125.8 billion | 4.01% | Metals and Mining |
| BHP Group (NYSE:BHP) | $204.6 billion | 3.30% | Metals and Mining |
| MP Materials (NYSE:MP) | $12.3 billion | 0.00% | Metals and Mining |
1. Rio Tinto
NYSE: RIO
Key Data Points
Rio Tinto is a diversified global mining company. It primarily focuses on producing industrial metals, including the three most widely used ones -- iron ore, aluminum, and copper. It also has a growing lithium business.
Rio Tinto is a global leader in producing aluminum. The company operates large-scale, high-quality bauxite mines, alumina refineries, and aluminum smelters. It’s a leader in efforts to use low-cost, carbon-free hydroelectricity to power aluminum operations. In early 2026, the company teamed up with China's Chinalco to acquire a controlling stake in Brazilian aluminum maker CBA in a deal valued at more than $900 million.
Rio Tinto is also a top producer of iron ore, a key ingredient in steel, the most widely used metal alloy in the world. The company’s iron ore operations in Australia comprise an integrated network of world-class mining assets, processing hubs, rail lines, and port terminals that help keep costs low. Rio Tinto and its partner Hancock Prospecting approved the Hope Downs 2 iron ore project in Australia to expand its iron ore business in June 2025.
It also has a large-scale copper business. It controls the massive Oyu Tolgoi mining project in Mongolia. The company also owns the Winu copper-gold project in Australia, which it's seeking to develop.
Finally, Rio Tinto approved the $2.5 billion Rincon project in Argentina in late 2024, its first commercial-scale lithium operation. It also acquired Arcadium Lithium for $6.7 billion in early 2025 to create a world-class lithium business to complement its leading iron ore, aluminum, and copper operations.
2. Nucor
NYSE: NUE
Key Data Points
Nucor is a diversified North American steel and steel products company. It produces steel bars, plates, beams, and other steel products, including fasteners, pipes, and wire. Nucor also operates a leading scrap metal business that recycles and transports ferrous (iron-containing) and nonferrous metals.
Nucor differs from most other steel manufacturers because it focuses on operating minimills, which use electric arc furnaces to melt scrap steel. The process is less expensive than traditional blast furnaces used to melt iron. It also powers its facilities primarily with natural gas rather than coal, which is cheaper. Nucor, which focuses on recycled metals, is one of the world's lowest-cost steel producers. Nucor is always looking to become more sustainable. It's partnering with Helion to develop a historic fusion power plant to provide zero-carbon electricity to one of its steelmaking plants.
The company’s relatively environmentally sustainable and lower-cost operations have enabled it to turn a profit across a range of economic conditions and to pay a steadily growing dividend. The steel producer delivered its 53rd consecutive year of dividend increases in late 2025. With more than 50 years of annual dividend increases, Nucor is a Dividend King. It may be an ideal stock for investors seeking a lower-risk steelmaker.
3. Wheaton Precious Metals
NYSE: WPM
Key Data Points
Wheaton Precious Metals is one of the largest metals streaming companies in the world. It provides mining companies with an upfront payment to help develop a project. In exchange, it receives the right to purchase a portion of the production at a fixed cost.
Wheaton Precious Metals has a diversified portfolio of streaming contracts. Its agreements give it the right to purchase gold, silver, palladium, and cobalt from a variety of leading mining companies. Its streams include currently producing mines, as well as those in development. Those development projects position Wheaton to grow its gold-equivalent production 50% by 2030.
The company’s contract portfolio allows it to buy silver and gold at average prices of $5.75 and $473 per ounce, respectively, through 2029. It can then sell the metals at prevailing market prices, pocketing the difference. With gold over $5,000 per ounce in early 2026 and silver surpassing $80, Wheaton is making a hefty profit on its precious metal streaming contracts. The company’s low-cost business model makes it an attractive investment in precious metals.
4. BHP Group
NYSE: BHP
Key Data Points
BHP Group is a globally diversified metals producer. It focuses on producing metals and materials for the following three industries:
- Steel: BHP Group produces iron ore and metallurgical coal, both key to the steel sector.
- Electrification: It produces copper and nickel, important metals for electrification and electric vehicles.
- Sustainable food production: BHP produces potash used in fertilizers.
The company has several near-term growth drivers, including the ramp-up of its Jansen potash mine in Canada, the expansion of its Western Australia iron ore business, and expansion projects supporting its metallurgical coal business in Australia. Additionally, the company has longer-term growth projects for its copper business in Chile and in Australia.
5. MP Materials
NYSE: MP
Key Data Points
MP Materials is a fully integrated producer of rare-earth magnets. It mines rare-earth from its Mountain Pass mine in California (the second-largest in the world), refines them at an on-site facility, and then combines them with other metals to produce powerful magnets at its manufacturing facility in Texas.
The rare-earth magnets produced by MP Materials are crucial to the transportation, energy, robotics, defense, and aerospace industries. In 2025, Apple (AAPL +0.45%) signed a $500 million partnership with MP Materials for a supply of magnets using recycled rare-earth materials. Additionally, MP Materials received a $400 million investment from the U.S. Department of Defense to support the construction of a second U.S. magnet manufacturing facility. These deals will help support the continued growth of the company's metals business. It also partnered with the Department of Defense to develop a rare-earth refinery joint venture with Saudi Arabia in late 2025.
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The metals industry and the economy
Metals companies largely fall into two categories:
- Those focused on precious metals such as gold and silver.
- Those that produce or use industrial metals such as iron ore, aluminum, and copper.
Consequently, metal companies exhibit varying levels of sensitivity to the global economy.
Demand and prices for industrial metals tend to rise and fall with the global economy. A recession typically causes demand and prices to fall, weighing on the profitability and stock prices of companies that produce industrial metals.
The value of precious metals, on the other hand, tends to have an inverse relationship to the economy. That’s due in large part to investors buying these metals to protect their wealth or to hedge against inflation. We saw this in 2025 and early 2026, as precious metals prices soared due to inflationary and global economic concerns.
Given the inverse relationships between these types of metals, investors might want to pair a company focused on industrial metals with one focused on precious metals to smooth returns.
Benefits and risks of investing in metal stocks
Investing in metals stocks has its share of pros and cons. Some of the benefits include:
- Growth potential: Demand for metals is rising, enabling producers to increase production volumes.
- Income: Many metals companies pay above-average dividends.
- Inflation hedge: Investing in a metals stock can help mute some of the impact of inflation on your portfolio.
Investing in metals stocks has risk, including:
- Volatility: Metal prices can be highly volatile, impacting metal companies' profitability and stock prices.
- Operational issues: A company might run into a mine cost overrun or operational issue that can impact the stock price.
How to choose which metals stocks to invest in
Investors should consider several factors when evaluating metal stocks, including:
- Valuation: Consider how its valuation metrics (e.g., price-to-earnings (P/E) ratio) compare to its peers.
- Financial strength: Evaluate its financial metrics (e.g., free cash flow and debt-to-equity ratio) compared to the industry.
- Competitive advantages: Look for whether it has competitive advantages, such as low-cost mining assets or manufacturing operations.
- Growth prospects: See whether the company has visible expansion opportunities from capacity expansion projects.
How to invest in metal stocks
Here's a step-by-step guide on how to buy metals stocks:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Metal Stocks vs. Metal ETFs
Investing in individual metals stocks is a higher-risk, higher-return strategy. A metals stock can outperform the price of the underlying metal it focuses on as it grows its production and profitability. However, a metals stock can also underperform metals prices for several reasons, including cost overruns on expansion projects, excessive debt, and mismanagement.
A metals ETF, on the other hand, provides broad exposure to the metals sector, helping reduce risk. While a metals ETF would deliver the performance of a top metals stock, it also won't underperform the sector. A metals ETF is better for an investor seeking returns roughly in line with the metals market, while an individual metals stock is best for those seeking an investment with the potential to outperform the average.
Key Trends in the Metal Industry
Metals demand is growing due to the following factors:
- Economic growth is the major demand growth catalyst for industrial metals
- Renewable energy and electric vehicles are driving demand for industrial metals and other materials, such as lithium and cobalt.
- The technology sector also contributes to demand for metals, which are crucial for building AI data centers and other tech hardware.
Related investing topics
FAQ
FAQ on metal stocks
About the Author
Matt DiLallo has positions in Apple and BHP Group. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends BHP Group and MP Materials. The Motley Fool has a disclosure policy.
