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 like cobalt, lithium, nickel, and rare-earth elements is high due to their usage for 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 is high due to their use in the technology and energy sectors, such as cobalt, lithium, nickel, and rare-earth.

What are the most undervalued basic material stocks?

According to Morningstar analysts, some of the most undervalued basic materials stocks were chemicals companies Dow (NYSE: DOW), LyondellBassell Industries (NYSE: LYB), and Eastman Chemical (NYSE: EMN).

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 pricing) tends to rise during periods of economic expansion and contract during a downturn.

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, Linde, and Nucor have decades-long dividend-growth streaks.

Best Materials Stocks of 2026 and How to Invest in Them

By Matthew DiLallo – Updated Mar 13, 2026 at 1:00 PM EST | Fact-checked by Frank Bass

Key Points

Materials stocks offer exposure to basic economic inputs like steel and copper.
The cyclical nature of the materials sector means demand and pricing fluctuate with economic conditions.
Top companies like Rio Tinto and Nucor focus on critical metals supporting economic growth.

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.

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

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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.

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Ticker Information Table
Name and ticker	Market cap	Industry
Rio Tinto Group (NYSE:RIO)	$133.7 billion	Metals and Mining
Eagle Materials (NYSE:EXP)	$6.6 billion	Construction Materials
Air Products And Chemicals (NYSE:APD)	$63.6 billion	Chemicals
Nucor (NYSE:NUE)	$56.1 billion	Metals and Mining
Linde (NASDAQ:LIN)	$234.9 billion	Chemicals
Southern Copper (NYSE:SCCO)	$156.6 billion	Metals and Mining
Newmont (NYSE:NEM)	$114.5 billion	Metals and Mining

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

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1. Rio Tinto

NYSE: RIO

Rio Tinto Group

Today's Change

(-0.31%) $-0.33

Current Price

$106.61

Key Data Points

Market Cap

$134B

Day's Range

$104.82 - $106.64

52wk Range

$55.64 - $112.58

Volume

10.3K

Avg Vol

2.8M

Gross Margin

25.17%

Dividend Yield

3.77%

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Rio Tinto (RIO -0.31%) 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 -1.53%) in a deal that would create the world's largest mining company.

2. Nucor

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NYSE: NUE

Nucor

Today's Change

(2.57%) $6.18

Current Price

$246.47

Key Data Points

Market Cap

$56B

Day's Range

$239.43 - $247.40

52wk Range

$106.21 - $247.40

Volume

Avg Vol

1.5M

Gross Margin

13.98%

Dividend Yield

0.90%

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Nucor (NUE +2.57%) 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 attention of Berkshire Hathaway (BRK.A -0.76%)(BRK.B -0.77%), which bought a stake in Nucor in 2025.

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3. Air Products & Chemicals

NYSE: APD

Air Products And Chemicals

Today's Change

(-1.36%) $-3.95

Current Price

$285.65

Key Data Points

Market Cap

$64B

Day's Range

$284.87 - $288.52

52wk Range

$229.11 - $307.96

Volume

25.5K

Avg Vol

1.2M

Gross Margin

31.97%

Dividend Yield

2.51%

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Air Products & Chemicals (APD -1.36%) 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 2026, the company extended its dividend growth streak to 44 consecutive years.

4. Eagle Materials

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NYSE: EXP

Eagle Materials

Today's Change

(3.96%) $8.18

Current Price

$214.74

Key Data Points

Market Cap

$6.6B

Day's Range

$208.79 - $215.44

52wk Range

$171.99 - $243.64

Volume

427.1K

Avg Vol

420.2K

Gross Margin

28.27%

Dividend Yield

0.47%

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Eagle Materials (EXP +3.96%) 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 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, OK, and its Laramie, WY, cement plant. Those investments will help reduce costs and expand production capacity, enhancing the company's ability to grow its earnings and shareholder value.

5. Linde

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NASDAQ: LIN

Linde

Today's Change

(-1.38%) $-7.10

Current Price

$507.87

Key Data Points

Market Cap

$235B

Day's Range

$507.69 - $515.84

52wk Range

$387.78 - $521.28

Volume

769.6

Avg Vol

2.3M

Gross Margin

37.79%

Dividend Yield

1.20%

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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

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NYSE: SCCO

Southern Copper

Today's Change

(-1.12%) $-2.13

Current Price

$187.75

Key Data Points

Market Cap

$157B

Day's Range

$185.11 - $189.20

52wk Range

$85.51 - $221.67

Volume

671.1

Avg Vol

1.6M

Gross Margin

55.59%

Dividend Yield

1.95%

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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

Today's Change

(-3.70%) $-4.12

Current Price

$107.23

Key Data Points

Market Cap

$114B

Day's Range

$107.07 - $109.90

52wk Range

$51.80 - $134.88

Volume

49.4K

Avg Vol

9.1M

Gross Margin

55.12%

Dividend Yield

1.18%

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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 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.

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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).

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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

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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.

Best Materials Stocks of 2026 and How to Invest in Them

Key Points

Top materials stocks in 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. Linde

Key Data Points

6. Southern Copper

Key Data Points

7. Newmont

Key Data Points

Types of Materials

Why do investors buy materials stocks?

Should you invest in materials stocks?

How to identify the best materials stocks to buy

How to invest in materials stocks

Related investing topics

Best Mining Stocks to Buy in 2026: Your Complete Guide

Best Metal Stocks of 2026: Your Guide to Investing in Metal

9 Best Dividend Stocks to Buy and Hold for May 2026

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

FAQ

FAQ on materials stocks

What materials are in high demand?

What materials are in high demand?

What industry is in high demand right now?

What industry is in high demand right now?

What are the most undervalued basic material stocks?

What are the most undervalued basic material stocks?

Are basic materials stocks a good buy now?

Are basic materials stocks a good buy now?

Are materials stocks cyclical investments?

Are materials stocks cyclical investments?

Do materials stocks pay dividends?

Do materials stocks pay dividends?

About the Author

Read Next

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Premium Investing Services

Top materials stocks in 2026

Key Data Points

Key Data Points

Key Data Points

4. Eagle Materials

Key Data Points

5. Linde

Key Data Points

6. Southern Copper

Key Data Points

7. Newmont

Key Data Points

Types of Materials

Why do investors buy materials stocks?

Should you invest in materials stocks?

How to identify the best materials stocks to buy

How to invest in materials stocks

Best Mining Stocks to Buy in 2026: Your Complete Guide

Best Metal Stocks of 2026: Your Guide to Investing in Metal

9 Best Dividend Stocks to Buy and Hold for May 2026

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

FAQ on materials stocks

What materials are in high demand?

What materials are in high demand?

What industry is in high demand right now?

What industry is in high demand right now?

What are the most undervalued basic material stocks?

What are the most undervalued basic material stocks?

Are basic materials stocks a good buy now?

Are basic materials stocks a good buy now?

Are materials stocks cyclical investments?

Are materials stocks cyclical investments?

Do materials stocks pay dividends?

Do materials stocks pay dividends?