Materials stocks give investors exposure to the basic building blocks of the global economy. These companies produce the raw inputs needed to manufacture, build, and power everyday products, from steel and chemicals to cement, paper, and industrial gases.
Because nearly every industry depends on materials in some form, the sector plays a foundational role in economic growth. At the same time, materials stocks tend to be cyclical, with demand and pricing rising and falling alongside economic conditions. That combination creates both opportunity and risk for investors.
Below, we highlight seven materials stocks that stand out in 2026, followed by guidance on whether materials stocks may fit into your portfolio.
Top materials stocks in 2026
Although the materials sector includes hundreds of companies, these seven stand out for their scale, financial strength, and exposure to long-term demand trends.
| Name and ticker | Market cap | Industry |
|---|---|---|
| Rio Tinto Group (NYSE:RIO) | $104.3 billion | Metals and Mining |
| Eagle Materials (NYSE:EXP) | $5.4 billion | Construction Materials |
| Air Products And Chemicals (NYSE:APD) | $62.6 billion | Chemicals |
| Nucor (NYSE:NUE) | $36.1 billion | Metals and Mining |
| Linde (NASDAQ:LIN) | $226.2 billion | Chemicals |
| Southern Copper (NYSE:SCCO) | $125.1 billion | Metals and Mining |
| Newmont (NYSE:NEM) | $104.2 billion | Metals and Mining |
1. Rio Tinto
NYSE: RIO
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NYSE: NUE
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3. Air Products & Chemicals
NYSE: APD
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NYSE: EXP
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NASDAQ: LIN
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Linde is the largest materials company by market cap. It's a leading global industrial gases and engineering company that generated $34 billion in sales in 2025.
The company sells industrial gases to customers in the healthcare, food and beverage, electronics, chemicals and energy, manufacturing, and metals and mining sectors. Notable gases include life-saving medical oxygen, ultra-high-purity and specialty gases for semiconductor manufacturing, and clean hydrogen production and carbon capture to reduce greenhouse gas emissions. Linde often produces industrial gases on-site for its customers, which it sells under long-term, take-or-pay contracts.
Linde's large-scale and stable cash flow profile has enabled it to increase its dividend for 32 consecutive years.
6. Southern Copper
NYSE: SCCO
Key Data Points
Southern Copper is a leading copper producer with mines in Mexico and Peru. It also produces molybdenum, silver, and zinc. Southern Copper is the fifth-largest copper producer and holds the world's largest copper reserves and resources. The company's large scale has enabled it to achieve some of the lowest costs in the industry.
The copper mining company is investing heavily to expand its production. Southern Copper expects to produce 911,000 tons of copper in 2026. It has approved projects that will add 156,000 tons of annual copper production, with production expected to start in 2027 and 2029. Meanwhile, it has several other expansion projects in development that could add up to 545,000 tons of annual copper production capacity by 2033. These projects could grow the company's copper production by 68% by 2035.
7. Newmont
NYSE: NEM
Key Data Points
Newmont is the world's leading gold company. It's also a leading producer of copper, silver, zinc, and lead. Newmont operates a dozen mines across eight countries.
The mining company produced 5.7 million ounces of gold in 2025. It has industry-leading gold and copper reserves and resources, supporting decades of production. The company announced the Lihir Nearshore Barrier mine-life extension project in 2026, unlocking over 5 million ounces of future gold production and extending the mine's life beyond 2040.
Types of Materials
There are many types of basic materials, which fall into the following three categories:
- Chemical products: Chemicals-based materials include fertilizers, industrial gases, and specialty chemicals.
- Metals and mining: These basic materials include metals such as gold, silver, steel, and aluminum, as well as other mined materials, such as minerals and aggregates.
- Forestry products: Forestry products include lumber, paper, and cardboard.
Why do investors buy materials stocks?
Investors are drawn to materials stocks for several reasons:
- Exposure to economic growth and infrastructure spending
- Potential protection against inflation
- Portfolio diversification
- Income from dividends
- Electrification and clean energy are key long-term demand drivers for many materials
Should you invest in materials stocks?
Materials stocks tend to perform best when economic activity is expanding. However, the sector is competitive and cyclical, which can pressure profits during downturns.
The strongest materials companies share common traits: low production costs, diversified operations, strong balance sheets, and disciplined capital allocation. These qualities help them remain profitable even when prices fall.
For investors willing to accept volatility, high-quality materials stocks can play a useful role in a diversified portfolio -- particularly during periods of economic growth or rising inflation.
How to identify the best materials stocks to buy
Here are some practical tips for identifying high-quality materials stocks:
- Look for companies with competitive advantages over their peers (e.g., lower production costs, strategic geographic locations, and strong infrastructure).
- Identify companies with strong financial profiles, including investment-grade balance sheets and conservative dividend payout ratios.
- Focus on companies that produce basic materials benefiting from more durable long-term demand drivers (e.g., supporting the growing demand for clean energy or technology).
How to invest in materials stocks
Here's a step-by-step guide on how to buy materials 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.
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FAQ
FAQ on materials stocks
About the Author
Matt DiLallo has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Eagle Materials. The Motley Fool has a disclosure policy.
