What materials are in high demand?

Many materials are in high demand. For example, demand for steel, copper, aluminum, and wood is high due to their usage in construction. Meanwhile, demand for metals such as cobalt, lithium, nickel, and rare-earth elements is high due to their use in clean energy and technology.

What industry is in high demand right now?

Several industries are in high demand right now, including technology, healthcare, and energy. Demand for certain basic materials, such as cobalt, lithium, nickel, and rare-earth elements, is high due to their use in the technology and energy sectors.

What are the most undervalued basic material stocks?

According to Morningstar analysts, the most undervalued basic materials stocks in mid-2026 were Albemarle (NYSE: ALB), Amrize (NYSE: AMRZ), and Celanese (NYSE: CE).

Are basic materials stocks a good buy now?

Basic materials stocks could be a good buy now. The basic materials industry is cyclical, meaning demand rises as the economy expands and declines during a recession. If we're currently in an economic expansion, basic materials stocks would be a good buy. However, if we're in a recession or heading towards one, they wouldn't be worth buying until the economy bottomed out and was about to start recovering.

Are materials stocks cyclical investments?

Yes, materials stocks are cyclical investments. Demand for basic materials (and their prices) tends to rise during periods of economic expansion and contract during downturns.

Do materials stocks pay dividends?

Many materials stocks pay dividends. However, they might not be the most reliable dividend stocks because demand for materials is cyclical. If there's a prolonged economic downturn, financially weaker materials companies might reduce or suspend their dividend payments to conserve cash. Even so, leading materials companies such as Air Products and Nucor have decades-long dividend-growth streaks, with Nucor a Dividend King with more than 50 years of annual dividend increases.

7 Best Materials Stocks for 2026 and How to Invest

By Matthew DiLallo – Updated Aug 17, 2026 at 12:36 PM EST | Fact-checked by Frank Bass

Key Points

Materials stocks provide essential economic inputs like steel and chemicals, crucial to many industries.
Investing in materials stocks offers growth potential, but risks include exposure to economic cycles that impact demand.
Nucor and Air Products have strong financials, enabling them to weather many economic cycles while steadily growing their dividends.

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A large truck in a copper mine. — Image source: Getty Images.

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Seven top materials stocks for 2026

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: Lumber, paper, and cardboard.

The materials sector includes hundreds of companies. The following seven stand out for their scale, financial strength, and exposure to long-term demand trends:

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Industry
Rio Tinto Group (NYSE:RIO)	$131.5 billion	Metals and Mining
Eagle Materials (NYSE:EXP)	$6.1 billion	Construction Materials
Air Products And Chemicals (NYSE:APD)	$68.0 billion	Chemicals
Nucor (NYSE:NUE)	$57.3 billion	Metals and Mining
MP Materials (NYSE:MP)	$10.5 billion	Metals and Mining
Southern Copper (NYSE:SCCO)	$182.6 billion	Metals and Mining
Newmont (NYSE:NEM)	$139.4 billion	Metals and Mining

Data as of Aug 28, 2026. Showing 7 of 7 total entries.

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1. Rio Tinto

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NYSE: RIO

Rio Tinto Group

Premium Feature

Moneyball Superscore

74/100

Today's Change

(-1.41%) $-1.48

Current Price

$103.30

Key Data Points

Market Cap

$131B

Day's Range

$103.02 - $105.17

52wk Range

$61.40 - $112.58

Volume

2.3M

Avg Vol

2.7M

Gross Margin

26.70%

Dividend Yield

4.44%

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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 -- as well as several other important metals and minerals, including lithium.

Rio Tinto focuses on these industrial metals because they are the ones the global economy consumes most. 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: This excellent electrical conductor is essential for electronics, electric vehicles (EVs), and solar energy production. 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 through share repurchases and dividends. The company was reportedly looking to flex its financial muscles in early 2026 by evaluating a potential takeover of rival miner Glencore (GLNCY +0.00%). This deal would have created the world's largest mining company, but they failed to reach an agreement.

2. Nucor

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NYSE: NUE

Nucor

Premium Feature

Moneyball Superscore

73/100

Today's Change

(-0.74%) $-1.87

Current Price

$250.50

Key Data Points

Market Cap

$57B

Day's Range

$248.13 - $256.18

52wk Range

$131.32 - $280.11

Volume

930.2K

Avg Vol

1.6M

Gross Margin

15.44%

Dividend Yield

0.88%

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Nucor (NUE -0.74%) 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. That has enabled it to generate free cash flow throughout the cycle, thereby maintaining a strong balance sheet. It's also a Dividend King, a company with more than 50 years of annual dividend increases (Nucor extended its streak to 53 consecutive years in late 2025, every year since it started paying dividends in 1973).

Those features drew the attention of Berkshire Hathaway (BRK.A +0.27%)(BRK.B +0.26%), which bought a stake in Nucor in 2025. As of mid-2026, Berkshire held a 0.8% stake in Nucor valued at over $500 million.

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3. Air Products & Chemicals

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NYSE: APD

Air Products And Chemicals

Premium Feature

Moneyball Superscore

52/100

Today's Change

(0.86%) $2.62

Current Price

$308.09

Key Data Points

Market Cap

$68B

Day's Range

$305.19 - $308.37

52wk Range

$229.11 - $314.87

Volume

Avg Vol

1.3M

Gross Margin

32.11%

Dividend Yield

2.36%

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Air Products & Chemicals (APD +0.86%) 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 to that its expertise in LNG, 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 2026, the company extended its dividend growth streak to 44 consecutive years.

4. Eagle Materials

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NYSE: EXP

Eagle Materials

Premium Feature

Moneyball Superscore

67/100

Today's Change

(-0.08%) $-0.15

Current Price

$197.56

Key Data Points

Market Cap

$6.1B

Day's Range

$195.80 - $201.94

52wk Range

$171.99 - $245.53

Volume

289.4K

Avg Vol

452.6K

Gross Margin

27.02%

Dividend Yield

0.51%

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Eagle Materials (EXP -0.08%) 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, thereby limiting the impact of import competition. 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 generates significant cash, enabling it to expand its operations and return capital to shareholders through dividends and share repurchases. During its 2026 fiscal year, Eagle Materials invested capital to modernize its Gypsum Wallboard plant in Duke, Oklahoma, and its Laramie, Wyoming, cement plant. Those investments will help reduce costs and expand production capacity, enhancing the company's ability to grow its earnings and shareholder value. Over the last five years, Eagle Materials has allocated nearly $3.5 billion in capital, returning 63% to shareholders via buybacks and dividends and reinvesting the remainder to grow its operations (through organic expansions and acquisitions).

5. MP Materials

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NYSE: MP

MP Materials

Premium Feature

Moneyball Superscore

67/100

Today's Change

(-4.91%) $-2.90

Current Price

$56.13

Key Data Points

Market Cap

$11B

Day's Range

$55.64 - $59.80

52wk Range

$37.81 - $100.25

Volume

4.9M

Avg Vol

Gross Margin

14.51%

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MP Materials is America's only fully integrated rare-earth producer. Rare-earth materials are crucial for the modern economy, including for the transportation, energy, robotics, defense, and aerospace industries. It has notable supply agreements with Apple (AAPL +1.63%), the Department of Defense (DoD), and many other leading companies.

The company extracts and refines rare-earth materials from a mine in California. It also manufactures some of the world's strongest and most efficient permanent magnets. It's currently building its new 10X rare-earth magnet manufacturing campus in Texas, with support from the DoD, and expects to commence operations in 2028.

6. Southern Copper

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NYSE: SCCO

Southern Copper

Premium Feature

Moneyball Superscore

77/100

Today's Change

(-3.00%) $-6.48

Current Price

$209.80

Key Data Points

Market Cap

$183B

Day's Range

$209.57 - $217.56

52wk Range

$89.41 - $220.78

Volume

1.3M

Avg Vol

1.3M

Gross Margin

57.82%

Dividend Yield

1.82%

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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

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NYSE: NEM

Newmont

Premium Feature

Moneyball Superscore

74/100

Today's Change

(-3.26%) $-4.31

Current Price

$127.98

Key Data Points

Market Cap

$139B

Day's Range

$127.11 - $132.89

52wk Range

$72.78 - $135.29

Volume

8.8M

Avg Vol

8.2M

Gross Margin

56.40%

Dividend Yield

0.77%

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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 expects to produce 5.3 million ounces of gold in 2026. 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.

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. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker 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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Benefits and risks of investing in materials stocks

Some of the benefits of investing in materials stocks are:

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

On the other hand, some of the risks of investing in the sector include:

Cyclical downturns tend to impact materials demand
Materials prices can be volatile
The industry can be capital-intensive

Methodology: How these stocks were chosen

The materials industry is very broad, with many publicly traded companies operating across the sector. I focused on the largest ones with the strongest financial profiles because they are best positioned to weather the industry's cyclical downturns and volatility. I also evaluated companies with solid growth prospects. This group stood out as the best investment opportunities across various aspects of the materials sector.

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.

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Investing in materials stocks: FAQ

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About the Author

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

TMFmd19

@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.

7 Best Materials Stocks for 2026 and How to Invest

Key Points

Seven top materials stocks for 2026

1. Rio Tinto

Key Data Points

2. Nucor

Key Data Points

3. Air Products & Chemicals

Key Data Points

4. Eagle Materials

Key Data Points

5. MP Materials

Key Data Points

6. Southern Copper

Key Data Points

7. Newmont

Key Data Points

How to invest in materials stocks

Benefits and risks of investing in materials stocks

Methodology: How these stocks were chosen

Should you invest in materials stocks?

Related investing topics

5 Best Mining Stocks for 2026 and How to Invest

5 Best Metals Stocks for 2026 and How to Invest

9 Best Dividend Stocks to Buy and Hold for August 2026

Best Cyclical Stocks to Buy in 2026: Everything Investors Need to Know

Investing in materials stocks: FAQ

About the Author

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Best Cyclical Stocks to Buy in 2026: Everything Investors Need to Know

Investing in materials stocks: FAQ

What materials are in high demand?

What industry is in high demand right now?

What are the most undervalued basic material stocks?

Are basic materials stocks a good buy now?

Are materials stocks cyclical investments?

Do materials stocks pay dividends?

1. Rio Tinto

3. Air Products & Chemicals

7. Newmont

How to invest in materials stocks

Benefits and risks of investing in materials stocks

Methodology: How these stocks were chosen

Should you invest in materials stocks?

Related investing topics

Seven top materials stocks for 2026

2. Nucor

4. Eagle Materials

6. Southern Copper

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

5. MP Materials