In this article, we discuss the 5 best material stocks to buy now. If you want to read our detailed analysis of these companies, go directly to the 10 Best Material Stocks to Buy Now.
5. Air Products and Chemicals, Inc. (NYSE:APD)
Number of Hedge Fund Holders: 40
Air Products and Chemicals, Inc. (NYSE:APD) sells industrial gases and chemicals to the manufacturing, metals, and electronics industries. The Pennsylvania-based company markets its industrial products globally in its over 750 facilities.
Earlier in November, the gas and chemical company announced a $15 billion agreement with the Indonesian government to build a coal gasification industry in the country. The material stock gained 10.4% year to date.
The material company’s revenue in the fiscal fourth quarter came in at $2.84 billion, beating estimates by $171 million. Aside from the 22% revenue growth from last year, Air Products and Chemicals, Inc. (NYSE:APD) is also a good dividend option for income investors. The company pays an annual dividend of $6 per share and a dividend yield of 2%.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management is a leading shareholder in Air Products and Chemicals, Inc. (NYSE:APD) with 351,940 shares worth more than $90 million at the end of the September quarter.
Meanwhile, on November 5, Deutsche Bank analyst David Begleiter maintained a Buy rating on Air Products and Chemicals, Inc. (NYSE:APD), citing the company’s cautious 2022 earnings forecast. Begleiter increased his price target for the stock to $340 from $315.
4. Vulcan Materials Company (NYSE:VMC)
Number of Hedge Fund Holders: 43
Vulcan Materials Company (NYSE:VMC) is one of the major construction material manufacturers in the US. The company has operations in the US, Bahamas, Mexico, Canada, and the Virgin Islands. The Alabama-based construction company sells sand and gravel, aggregates, and crushed stone.
The construction material company is one of the best material stocks to buy now according to Jefferies analyst Philip Ng. The stock rose 3.7% on November 8 following the passage of the US infrastructure plan. Shares of Vulcan Materials Company (NYSE:VMC) increased 37% year to date.
Of the 873 elite funds tracked by Insider Monkey, 43 were long Vulcan Materials Company (NYSE:VMC) at the end of June, compared to 48 in the first quarter of 2021.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Vulcan Materials Company (NYSE:VMC) with over 1.79 million shares worth $303 million at the end of the third quarter of 2021.
3. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 44
Alcoa Corporation (NYSE:AA) is a Pennsylvania-based aluminum producer. In the second quarter of 2021, more hedge funds were long on the metal stock with 44 hedge funds in the database of Insider Monkey holding stakes worth $1.16 billion, up from 38 in the previous quarter worth $1 billion. The stock returned 173% gains to investors in the previous year.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alcoa Corporation (NYSE:AA) with 6.43 million shares worth more than $315 million at the end of the September quarter.
Wolfe Research analyst Timna Tanners initiated an Outperform rating on Alcoa Corporation (NYSE:AA) on November 16. The analyst sees a bullish view on aluminum fundamentals and high prices until 2023. Tanners set a price target of $63 for the metal stock.
Alcoa Corporation (NYSE:AA) pays its shareholders an annual dividend of $0.40 per share.
2. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 57
DuPont de Nemours, Inc. (NYSE:DD) sells construction and packaging materials. The company also manufactures medical devices, fabric, resins, and solar materials. The company recently reported Q3 2021 earnings where revenue increased by 18% year over year to $4.3 billion.
DuPont de Nemours, Inc. (NYSE:DD) is also a good investment option for income investors as the material stock pays an annual dividend of $1.20 per share.
Of the 873 elite funds tracked by Insider Monkey, 57 were long DuPont de Nemours, Inc. (NYSE:DD) at the end of June, up from 49 in the first quarter of 2021.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm 40 North Management is a leading shareholder in DuPont de Nemours, Inc. (NYSE:DD) with over 4.87 million shares worth $331 million at the end of the third quarter of 2021.
On November 3, Deutsche Bank analyst David Begleiter kept a Buy rating on the material stock. Begleiter also increased his price target for DuPont de Nemours, Inc. (NYSE:DD) to $95 from $92.
In its Q1 2021 investor letter, Longleaf Partners Fund mentioned DuPont de Nemours, Inc. (NYSE:DD) and shared their insights on the company. Here is what the fund said:
“We exited three businesses in the quarter (including) DuPont. We have owned DuPont successfully three times now in the last decade and have great respect for CEO Ed Breen, who has delivered on creating value and focusing the company on its core businesses. We continue to view the business and leadership highly and hope to have the opportunity to partner with them again.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 76
Metal manufacturer Freeport-McMoRan Inc. (NYSE:FCX) tops the list of 10 best material stocks to buy now. Recently, the Arizona-based company announced a 58% revenue growth in Q3 2021. Aside from the metal producer’s robust business, Freeport-McMoRan Inc. (NYSE:FCX) offers its stockholders a 0.76% dividend yield.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Freeport-McMoRan Inc. (NYSE:FCX) with 46 million shares worth more than $1.53 billion as of the third quarter.
As of the end of the second quarter, 76 hedge funds tracked by Insider Monkey reported owning stakes in Freeport-McMoRan Inc. (NYSE:FCX). The total worth of these stakes is $3.87 billion. This shows the hedge fund sentiment is positive for the company as 68 funds had stakes in the company in the previous quarter, having a total worth of $3.29 billion.
Analyst Timna Tanners of Wolfe Research initiated an Outperform rating on Freeport-McMoRan Inc. (NYSE:FCX) on November 16. The analyst sees potential on Freeport-McMoRan’s copper segment through at least 2023. Tanners set a price target of $47 for the material stock.
You can also take a peek at the 10 Best Mining Stocks To Buy Now and Cathie Wood’s Latest Stock Picks Under $10.
