Best Materials Stocks of 2026 and How to Invest in Them

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.

Rio Tinto (RIO -1.41%) is one of the world's leading mining companies. The London-based company produces the three top industrial metals -- iron ore, aluminum, and copper -- and several other important metals and minerals, including lithium.

Rio Tinto focuses on these industrial metals because they are the ones the global economy most commonly consumes. The uses for iron ore, aluminum, and copper are numerous and growing:

• Iron ore: The primary material for making the steel used for cars, appliances, buildings, wind turbines, and other infrastructure.
• Aluminum: A lightweight metal and a vital component for many technology applications. Aluminum is used to make jet engines, electric vehicles, and mobile phones.
• Copper: Copper is an excellent conductor of electricity, making it essential for electronics, electric vehicles (EVs), and for producing solar energy. It is also a vital component of many technology applications.

Although these metals are highly sensitive to cyclical changes in the global economy, demand for the metals Rio Tinto produces should continue to grow.

Rio Tinto is also becoming a global leader in supplying energy transition metals. It bought lithium producer Arcadium Lithium for $6.7 billion in 2025 to become a major lithium producer. Rio Tinto also agreed to invest $2.5 billion in late 2024 to expand its Rincon project in Argentina, where it's building its first commercial-scale lithium operation.

The company also boasts a strong balance sheet and some of the lowest-cost operations in the world. It has the financial flexibility to expand its operations while returning cash to investors via share repurchases and dividend payments. The company was reportedly looking to flex its financial muscles in early 2026 by evaluating a potential takeover of rival miner Glencore (GLNCY -1.83%) in a deal that would create the world's largest mining company.

2. Nucor

Nucor (NUE -0.26%) 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 +0.28%)(BRK.B +0.20%), bought a stake in Nucor in 2025.

Air Products & Chemicals (APD +0.58%) 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

Eagle Materials (EXP +0.46%) 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.

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