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 four 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 four 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) | $109.5 billion | Metals and Mining |
| Eagle Materials (NYSE:EXP) | $7.3 billion | Construction Materials |
| Air Products And Chemicals (NYSE:APD) | $58.2 billion | Chemicals |
| Nucor (NYSE:NUE) | $41.3 billion | Metals and Mining |
1. Rio Tinto
NYSE: RIO
Key Data Points
NYSE: NUE
Key Data Points
Nucor (NUE +0.02%) is the largest and most diversified steel and steel products company in North America. It’s also the continent’s largest steel recycler.
The company’s focus on steel positions it for two megatrends. First, steel is essential for making wind turbines, so it’s vital to the renewable energy industry. Steel is also crucial for infrastructure, such as bridges and railways, making it a beneficiary of increased infrastructure spending in the U.S.
Nucor has a low and highly variable cost structure, so it has a long history of generating free cash flow throughout the cycle. The steelmaker has maintained a strong balance sheet, and it is now a Dividend King after more than 50 years of growing its dividend payments (it extended its streak to 53 consecutive years in late 2025, every year since it started paying dividends in 1973).
Those features drew the eye of Warren Buffett, whose company, Berkshire Hathaway (BRK.A +0.29%)(BRK.B +0.13%), bought a stake in Nucor in 2025.
3. Air Products & Chemicals
NYSE: APD
Key Data Points
Air Products & Chemicals (APD +0.35%) is one of the world’s leading industrial gas companies. It supplies essential industrial gases to the refining, chemical, metals, electronics, manufacturing, and food and beverage industries. It’s also a leading global supplier of liquefied natural gas (LNG) process technology and equipment.
The company is a major supplier of hydrogen, which could play an important role in fueling the economy in the future. In addition, its expertise in carbon capture and storage could help reduce greenhouse gas emissions. Add that to its importance to the growth of LNG, a widely used fuel, and Air Products is playing a vital role in helping the global economy transition to cleaner energy sources.
Air Products also boasts a strong financial profile, including an excellent balance sheet and healthy cash flow. That gives it the financial flexibility to expand its operations and pay a growing dividend. In early 2025, the company extended its dividend growth streak to 43 consecutive years.
4. Eagle Materials
NYSE: EXP
Key Data Points
Eagle Materials (EXP +0.51%) is a leading U.S. building materials producer. It manufactures heavy materials (cement, concrete, and aggregates) and light materials (gypsum wallboard and recycled paperboard). These materials are crucial to the construction industry.
Eagle Materials strategically focuses on operating heavy materials manufacturing capacity in the U.S. heartland, limiting the impact of competition from imports. Meanwhile, it concentrates its light materials manufacturing capacity in the southern portion of the country, where home construction is rising. These features enable it to benefit from higher prices and make more money on the materials it produces.
Eagle Materials produces a lot of cash, giving it the funds to expand its operations and return capital to shareholders through dividends and share repurchases. During its 2026 fiscal year, Eagle Materials invested capital to expand its Mountain Cement plant and modernize its Gypsum Wallboard plant in Duke, Okla. Those investments will help increase its earnings and shareholder value.
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
- Long-term demand trends in metals tied to electrification and clean energy
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 compared to their peers (e.g., lower production costs, strategic geographical locations, and 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
Anyone can invest in materials stocks. Here's a step-by-step guide on how to add them to your portfolio:
- 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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