Best Materials Stocks of 2026 and How to Invest in Them

By Matthew DiLallo – Updated Jan 19, 2026 at 12:11 PM EST | Fact-checked by Frank Bass

Key Points

Invest in materials stocks like Rio Tinto for growing metal demand and strong financial health.
Consider Nucor for its role in renewable energy and infrastructure, and consistent dividends.
Air Products is key for future energy needs and has a strong dividend history.
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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.

Ticker Information Table
Name and ticker	Market cap	Industry
Rio Tinto Group (NYSE:RIO)	$121.0 billion	Metals and Mining
Eagle Materials (NYSE:EXP)	$7.2 billion	Construction Materials
Air Products And Chemicals (NYSE:APD)	$63.8 billion	Chemicals
Nucor (NYSE:NUE)	$43.5 billion	Metals and Mining

Data as of Feb 5, 2026. Showing 4 of 4 tickers.

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1. Rio Tinto

NYSE: RIO

Rio Tinto Group

Today's Change

(0.11%) $0.11

Current Price

$96.48

Key Data Points

Market Cap

$121B

Day's Range

$94.86 - $98.60

52wk Range

$51.67 - $98.60

Volume

4.9M

Avg Vol

3.5M

Gross Margin

24.28%

Dividend Yield

3.87%

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Rio Tinto (RIO +0.11%) 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 -4.86%) in a deal that would create the world's largest mining company.

2. Nucor

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NYSE: NUE

Nucor

Today's Change

(1.85%) $3.45

Current Price

$189.95

Key Data Points

Market Cap

$43B

Day's Range

$186.53 - $191.04

52wk Range

$97.59 - $191.04

Volume

2.4M

Avg Vol

1.6M

Gross Margin

11.98%

Dividend Yield

1.16%

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Nucor (NUE +1.85%) 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 +2.40%)(BRK.B +1.97%), bought a stake in Nucor in 2025.

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3. Air Products & Chemicals

NYSE: APD

Air Products And Chemicals

Today's Change

(3.13%) $8.70

Current Price

$286.66

Key Data Points

Market Cap

$64B

Day's Range

$279.95 - $286.69

52wk Range

$229.11 - $336.64

Volume

61K

Avg Vol

1.7M

Gross Margin

31.68%

Dividend Yield

2.50%

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Air Products & Chemicals (APD +3.13%) 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

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NYSE: EXP

Eagle Materials

Today's Change

(4.45%) $9.77

Current Price

$229.33

Key Data Points

Market Cap

$7.2B

Day's Range

$220.68 - $233.17

52wk Range

$191.91 - $262.81

Volume

836K

Avg Vol

471K

Gross Margin

28.30%

Dividend Yield

0.44%

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Eagle Materials (EXP +4.45%) 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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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.

FAQ

FAQ on materials stocks

About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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@MatthewDiLallo

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.