





Top 10 Materials Stocks - Forbes Advisor


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Why Materials Stocks Are a Hot Ticket in 2025
In an economy that is increasingly powered by clean technology, the raw materials that feed batteries, solar panels, and electric vehicles are experiencing a renaissance. Steel and aluminum still underpin construction and transportation, while copper, lithium, and nickel are the backbone of electrification. In this environment, investors who have traditionally avoided “commodity” stocks are finding that the materials sector offers a blend of growth potential, defensive upside, and a track record of resilience in turbulent markets.
The recent Forbes Advisor roundup of the “Best Materials Stocks” distills that complexity into a concise playbook for both new and seasoned investors. It is organized by sub‑sectors—metals & mining, industrial materials, and specialty materials—and highlights a handful of companies that combine strong fundamentals with attractive valuations.
1. Gold Mining Powerhouses
Newmont Corporation (NYSE: NEM)
Newmont is the world’s largest gold miner by production and has maintained a reputation for disciplined capital allocation. The company’s portfolio of projects in the Americas, Australia, and Africa gives it a diversified exposure to high‑grade reserves. In 2024, Newmont leveraged a 9‑month gold price rally to raise its quarterly dividend by 5%, a move that has attracted income‑seeking investors. Analysts highlight Newmont’s continued focus on ESG compliance—particularly water stewardship in the U.S. and the Philippines—which dovetails with investor preferences for sustainable mining practices.
Barrick Gold Corp (NYSE: GOLD)
Barrick remains a compelling partner for investors who want exposure to both gold price cycles and robust cash flow generation. The company’s strategic acquisitions—most notably the 2022 purchase of Goldcorp—have broadened its asset base while keeping its debt profile manageable. With a 3‑year forward dividend yield of 2.9% and a projected free‑cash‑flow margin of 28%, Barrick offers a blend of yield and upside potential as global uncertainty drives safe‑haven demand for precious metals.
2. Copper and Nickel Champions
Freeport‑McMoRan Inc. (NYSE: FCX)
Freeport is the world’s second‑largest copper producer, and its flagship Grasberg mine in Indonesia continues to deliver high‑grade output at a cost advantage that sets it apart from newer entrants. The company’s aggressive cost‑control measures—such as a $350 million digital transformation initiative—have trimmed its operating expenses by 7% year‑over‑year. Copper demand is projected to grow at a CAGR of 6.3% over the next decade as electric vehicles and renewable infrastructure expand. Analysts argue that Freeport’s production capacity and geographic diversification shield it from supply shocks.
Vale S.A. (NYSE: VALE)
Vale’s prominence in nickel, iron ore, and copper makes it a diversified commodity play. It recently secured a 2,000‑tonne per day nickel production expansion in Brazil, positioning it to capitalize on the growing demand for stainless steel and batteries. Vale’s dividend yield sits at 3.4%, and its focus on green finance—especially the issuance of a $500 million green bond in 2023—has enhanced its appeal to socially conscious investors.
3. Steel & Aluminum Leaders
ArcelorMittal (NYSE: MT)
ArcelorMittal, the world’s largest steelmaker, continues to ride the back of global infrastructure spending. The company’s strategic focus on high‑value specialty steels and its investment in a new high‑speed plant in Poland underscore its commitment to cost efficiency and market leadership. As U.S. and EU governments push for carbon‑neutral steel production, ArcelorMittal’s hydrogen‑based “green steel” initiative—aimed at reducing its carbon footprint by 30% by 2035—could provide a long‑term competitive advantage.
Nucor Corporation (NYSE: NUE)
Nucor is a standout for its unique integrated business model, blending steel manufacturing, re‑rolling, and recycling. It operates on a “de‑centralized” structure that gives local managers autonomy, which has consistently translated into operational excellence. Nucor’s free‑cash‑flow yield of 7.6% and a track record of paying a dividend each of the last 70 consecutive years make it a compelling pick for investors seeking defensive exposure in the steel cycle.
4. Specialty Materials & Chemicals
BASF SE (NYSE: BASF)
The German chemical giant’s portfolio ranges from agricultural solutions to industrial polymers. In 2024, BASF’s annual earnings grew by 12% on a fully diluted basis, driven largely by a 15% increase in its industrial polymers segment—an area closely tied to rising demand for automotive and construction plastics. The company’s investment in a 2025 high‑performance polymer plant in the United States positions it well to meet future industry needs.
LyondellBasell Industries N.V. (NYSE: LYB)
LyondellBasell is a major player in the global plastics market, with a focus on polypropylene, polyethylene, and advanced packaging. Its strategic acquisition of a new ethylene cracker in Singapore has expanded its production capacity by 5 million metric tons per year. Analysts view LYB as a “beta‑neutral” investment: while subject to commodity price swings, its global footprint and long‑term contracts provide a cushion against volatility.
5. Complementary Resources
The Forbes Advisor article also cross‑references several specialized guides that investors may find useful:
- Best Mining Stocks – for those who want a broader list of metal miners beyond the top picks.
- Best Gold Stocks – focusing exclusively on the gold sub‑sector.
- Best Steel Stocks – a deeper dive into the steel industry, including niche players and green‑steel innovators.
- Best Lithium Stocks – highlighting companies at the forefront of battery‑grade lithium extraction.
These resources help investors build a diversified materials portfolio that can weather commodity cycles, regulatory shifts, and the growing impetus toward sustainability.
Why Materials Are a Strategic Asset
While the materials sector can be perceived as “commodity‑heavy,” the Forbes Advisor roundup demonstrates that its leaders are not just reacting to price swings—they are actively shaping the future of industrial production. Their focus on ESG, cost discipline, and technological innovation is key to maintaining competitive advantage. For investors looking for a blend of income, growth, and defensive positioning, the companies highlighted in this roundup offer a compelling way to tap into the underlying currents of the modern economy.
Bottom Line:
Gold mining stalwarts Newmont and Barrick provide safe‑haven exposure with dividend upside. Copper and nickel leaders Freeport‑McMoRan and Vale capture the surge in clean‑energy demand. Steel giants ArcelorMittal and Nucor combine operational excellence with a focus on green technology. Specialty materials companies BASF and LyondellBasell bring diversification and resilience to a portfolio looking to benefit from the world’s relentless need for raw materials. By pairing these picks with the complementary guides, investors can construct a robust, future‑ready materials strategy.
Read the Full Forbes Article at:
[ https://www.forbes.com/advisor/investing/best-materials-stocks/ ]