Top Materials Stocks for October 2021

2 years ago 271

CE, FCX, and OLN are apical for value, growth, and momentum, respectively

Updated September 21, 2021

The materials assemblage includes companies engaged successful the discovery, development, and processing of raw materials, which are utilized crossed a wide scope of sectors and industries. Materials stocks see manufacturers of products arsenic varied arsenic plastic, fertilizer, paper, concrete, and metals. Prominent names see Ecolab Inc. (ECL), Air Products and Chemicals Inc. (APD), and DuPont de Nemours Inc. (DD).

Materials stocks, represented by the Materials Select Sector SPDR ETF (XLB), person underperformed the broader market. The XLB's full instrumentality was 23.9% implicit the past 12 months, beneath the Russell 1000's full instrumentality of 35.2%. These marketplace show numbers and each statistic successful the tables beneath are arsenic of Sept. 17, 2021.

Here are the apical 3 materials stocks with the champion value, the fastest growth, and the astir momentum.

Best Value Materials Stocks

These are the materials stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits tin beryllium returned to shareholders successful the signifier of dividends and buybacks, a debased P/E ratio shows you’re paying little for each dollar of nett generated.

Best Value Materials Stocks

	Price ($)	Market Cap ($B)	12-Month Trailing P/E Ratio
Celanese Corp. (CE)	148.91	16.6	6.8
DuPont de Nemours Inc. (DD)	68.91	36.0	6.9
LyondellBasell Industries NV (LYB)	92.15	30.8	7.6

^{Source: YCharts}

Celanese Corp.: Celanese is simply a planetary shaper of chemicals and precocious materials. It produces acetyl, acetate, vinyl emulsion, and engineered polymers.
DuPont de Nemours Inc.: DuPont de Nemours produces operation materials, fabrics, electronics, aesculapian devices, resins, and adhesives for the energy, automotive, and different industries. For its Q2 2021, ended June 30, DuPont reported nett income of $487 cardinal versus nett nonaccomplishment successful the prior-year 4th connected 25.7% YOY nett income growth. The institution cited beardown show successful respective end-markets, including semiconductors, smartphones, automotive, and residential construction, arsenic a cardinal origin successful its performance.
LyondellBasell Industries NV: LyondellBasell Industries makes petrochemical products that are utilized successful a wide scope of industries, including successful the manufacturing of idiosyncratic attraction products, lightweight plastics, nutrient packaging, automotive components, aesculapian applications, biofuels, and more. In precocious August, the institution announced the upcoming status of CEO Bhavesh V. (Bob) Patel connected Dec. 31, 2021. At that time, Patel volition besides measurement down from the company's Board of Directors. LyondellBasell did not sanction a successor successful the property release.

Fastest-Growing Materials Stocks

These are the apical materials stocks arsenic ranked by a growth model that scores companies based connected a 50/50 weighting of their astir caller quarterly year-over-year (YOY) percentage revenue growth, and their astir caller quarterly YOY earnings-per-share (EPS) growth. Both income and net are captious factors successful the occurrence of a company. Therefore ranking companies by lone 1 maturation metric makes a ranking susceptible to the accounting anomalies of that 4th (such arsenic changes successful taxation instrumentality oregon restructuring costs) that whitethorn marque 1 oregon the different fig unrepresentative of the concern successful general. Companies with quarterly EPS oregon gross maturation of implicit 2,500% were excluded arsenic outliers.

Fastest-Growing Materials Stocks

	Price ($)	Market Cap ($B)	EPS Growth (%)	Revenue Growth (%)
Freeport-McMoRan Inc. (FCX)	33.05	48.5	2,330	88.2
Nucor Corp. (NUE)	104.89	30.8	1,300	103.1
Steel Dynamics Inc. (STLD)	61.95	12.6	822.2	113.2

^{Source: YCharts}

Freeport-McMoRan Inc.: Freeport-McMoRan is simply a starring planetary mining institution with important reserves of copper, gold, and molybdenum. The institution has operations successful North and South America arsenic good arsenic successful Indonesia.
Nucor Corp.: Nucor is simply a shaper of c and alloy steel, alloy deck, alloy bearing products, and acold finished steel. The institution besides acts arsenic a broker of assorted types of metals. On Sept. 20, the institution announced its plans to physique a $2.7 cardinal state-of-the-art expanse mill with a capableness of 3 cardinal tons per year. Nucor is considering locations successful Ohio, Pennsylvania, and West Virginia for the mill, which volition service customers successful the Midwest and Northeast.
Steel Dynamics Inc.: Steel Dynamics is simply a carbon-steel shaper and metals recycler. The institution offers products including flat-rolled alloy sheet, structural beams, and engineered barroom special-bar-quality. For the company's Q2 2021 ended June 30, Steel Dynamics reported melodramatic maturation YOY successful some operating income and nett income attributable to the company. The maturation was driven by grounds operating income successful the company's Steel Operations concern and grounds shipments successful its Steel Fabrication Operations.

Materials Stocks With the Most Momentum

These are the materials stocks that had the highest full instrumentality implicit the past 12 months.

Materials Stocks With the Most Momentum

	Price ($)	Market Cap ($B)	12-Month Trailing Total Return (%)
Olin Corp. (OLN)	48.49	7.8	301.8
Alcoa Corp. (AA)	48.83	9.1	263.0
Cleveland-Cliffs Inc. (CLF)	21.86	10.9	227.2
Russell 1000	N/A	N/A	35.2
Materials Select Sector SPDR ETF (XLB)	N/A	N/A	23.9

^{Source: YCharts}

Olin Corp.: Olin manufactures and distributes chemic products, specified arsenic chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, and hydrochloric acid. It besides makes sporting ammunition and small-caliber subject ammunition.
Alcoa Corp.: Alcoa is simply a starring shaper of aluminum, bauxite, and alumina products. The institution serves customers successful the aluminum manufacture astir the world. On Sept. 20, Alcoa announced plans to restart its Alumar smelter successful São Luís, Brazil, antecedently curtailed since 2015. The smelter volition beryllium powered with 100% renewable vigor and volition person an aluminum accumulation capableness of 268,000 metric tons per year.
Cleveland-Cliffs Inc.: Cleveland-Cliffs is simply a large North American flat-rolled alloy shaper and supplier of robust ore pellets.

The comments, opinions, and analyses expressed herein are for informational purposes lone and should not beryllium considered idiosyncratic concern proposal oregon recommendations to put successful immoderate information oregon to follow immoderate concern strategy. Though we judge the accusation provided herein is reliable, we bash not warrant its accuracy oregon completeness. The views and strategies described successful our contented whitethorn not beryllium suitable for each investors. Because marketplace and economical conditions are taxable to accelerated change, each comments, opinions, and analyses contained wrong our contented are rendered arsenic of the day of the posting and whitethorn alteration without notice. The worldly is not intended arsenic a implicit investigation of each worldly information regarding immoderate country, region, market, industry, investment, oregon strategy.

Article Sources

Investopedia requires writers to usage superior sources to enactment their work. These see achromatic papers, authorities data, archetypal reporting, and interviews with manufacture experts. We besides notation archetypal probe from different reputable publishers wherever appropriate. You tin larn much astir the standards we travel successful producing accurate, unbiased contented successful our editorial policy.