In this article, we will look at the 5 best materials stocks to buy now. If you want to explore similar stocks, you can read 12 Best Materials Stocks to Buy Now.
5. Vulcan Materials Company (NYSE:VMC)
Number of Hedge Fund Holders: 36
Vulcan Materials Company (NYSE:VMC) produces and supplies construction aggregates primarily in the United States. The company operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. On July 8, Vulcan Materials Company (NYSE:VMC) declared a quarterly cash dividend of $0.40 per share. The dividend is payable on September 2 to investors of record at the close of business on August 17. As of August 16, Vulcan Materials Company (NYSE:VMC) has a forward dividend yield of 0.90% and trailing twelve-month free cash flows of $389.80 million.
On July 19, DA Davidson analyst Brent Thielman revised his price target on Vulcan Materials Company (NYSE:VMC) to $195 from $220 and maintained a Buy rating on the shares.
On August 4, Vulcan Materials Company (NYSE:VMC) released earnings for the fiscal second quarter of 2022. The company reported earnings per share of $1.53 and generated a revenue of $1.95 billion, up 43.59% year over year, outperforming expectations by $105.23 million.
In the second quarter of 2022, Stockbridge Partners raised its stakes in Vulcan Materials Company (NYSE:VMC) by 15%, bringing them to $286.42 million. As of June 30, the fund owns over 2 million shares of the company and is the top shareholder.
At the end of the first quarter of 2022, 36 hedge funds held stakes in Vulcan Materials Company (NYSE:VMC) worth $2.0 billion. This is compared to 36 positions in the previous quarter with stakes worth $2.24 billion.
4. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 50
DuPont de Nemours, Inc. (NYSE:DD) provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. The company operates through three segments: Electronics & Industrial, Mobility & Materials, and Water & Protection. As of August 16, DuPont de Nemours, Inc. (NYSE:DD) has a forward dividend yield of 2.11%.
On August 2, DuPont de Nemours, Inc. (NYSE:DD) announced earnings for the fiscal second quarter of 2022. The company reported earnings per share of $0.88 and outperformed EPS expectations by $0.13. The company generated a revenue of $3.32 billion for the quarter and beat estimates by $66.32 million.
Shortly after the company’s earnings release, Deutsche Bank analyst David Begleiter revised his price target on DuPont de Nemours, Inc. (NYSE:DD) to $70 from $80 and reiterated a Buy rating on the shares. On August 8, Citi analyst P.J. Juvekar raised his price target on DuPont de Nemours, Inc. (NYSE:DD) to $75 from $72 and maintained a Buy rating on the shares.
At the close of Q1 2022, 50 hedge funds were bullish on DuPont de Nemours, Inc. (NYSE:DD) and held stakes worth $1.49 billion in the company. this is compared to 56 positions in the preceding quarter with stakes worth $1.97 billion.
As of June 30, 40 North Management owns 5.88 million shares of DuPont de Nemours, Inc. (NYSE:DD) and is the largest shareholder in the company. The fund’s stakes in the company are valued at $326.81 million.
3. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 50
Alcoa Corporation (NYSE:AA) produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through three segments: Bauxite, Alumina, and Aluminum. As of August 16, Alcoa Corporation (NYSE:AA) has gained 22.64% over the past twelve months and is offering a forward dividend yield of 0.76%, which the company backs with free cash flows of $1.15 billion.
On July 20, Alcoa Corporation (NYSE:AA) announced earnings for the fiscal second quarter of 2022. The company reported earnings per share of $2.67 and beat EPS estimates by $0.20. The company’s revenue for the quarter amounted to $3.64 billion, up 28.63% year over year, and beat expectations by $162.55 million.
On July 25, Morgan Stanley analyst Carlos De Alba revised his price target on Alcoa Corporation (NYSE:AA) to $51 from $55 and reiterated an Equal Weight rating on the shares.
On July 28, Alcoa Corporation (NYSE:AA) declared a quarterly cash dividend of $0.10 per share. The dividend is payable on August 25 to shareholders of record on August 9.
At the end of Q1 2022, 50 hedge funds were long Alcoa Corporation (NYSE:AA) and held stakes worth $2.80 billion in the company. This is compared to 41 positions in the previous quarter with stakes worth $1.48 billion. The hedge fund sentiment for the stock is positive.
In the second quarter of 2022, Soroban Capital Partners raised its stakes in Alcoa Corporation (NYSE:AA) by 9%, bringing them to $234.54 million. The investment covers 2.02% of Eric W. Mandelblatt’s 13F portfolio.
2. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 66
The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. As of August 16, The Mosaic Company (NYSE:MOS) has gained 67.32% over the past twelve months and is offering a forward dividend yield of 1.13%, which the company supports with free cash flows of $1.68 billion.
On August 1, The Mosaic Company (NYSE:MOS) released earnings for the fiscal second quarter of 2022. The company reported earnings per share of $3.64 and generated a revenue of $5.37 billion, up 91.85% year over year.
On August 3, Citi analyst P.J. Juvekar upgraded The Mosaic Company (NYSE:MOS) to Buy from Neutral and raised his price target to $61 from $57. The analyst expects agriculture stocks to drive outperformance in a slowing economic environment.
At the close of Q1 2022, 66 hedge funds disclosed ownership of stakes in The Mosaic Company (NYSE:MOS). The total value of these stakes amounted to $1.53 billion, up from $1.34 billion in the previous quarter with 46 positions. The hedge fund sentiment for the stock is positive.
As of June 30, Soroban Capital Partners owns more than 6.72 million shares of The Mosaic Company (NYSE:MOS) and is the largest shareholder in the company. The fund’s stakes are valued at $317.74 million, up 37% from its prior stakes, and the investment covers 2.74% of Soroban Capital Partners’ 13F portfolio.
Here is what Carillon Tower Advisers had to say about The Mosaic Company (NYSE:MOS) in its first-quarter 2022 investor letter:
“Despite a rally near the end of the quarter, major equity indexes closed lower as fear of U.S. Federal Reserve (FED) balance sheet tapering, interest rate hikes, and war in the Ukraine sent the bulls into retreat. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Potash and phosphate fertilizer producer Mosaic (NYSE:MOS) performed strongly as war exacerbated already short supplies of key oil and gas exploration.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 68
Freeport-McMoRan Inc. (NYSE:FCX) engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores copper, gold, molybdenum, silver, and other metals along with oil & gas. On July 21, Freeport-McMoRan Inc. (NYSE:FCX) reported earnings for the fiscal second quarter of 2022. The company reported earnings per share of $0.58 and generated a revenue of $5.42 billion.
On July 22, Deutsche Bank analyst Abhi Agarwal revised his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $35 from $37 and reiterated a Hold rating on the shares.
As of August 16, Freeport-McMoRan Inc. (NYSE:FCX) has a trailing twelve-month PE ratio of 9.79 and is offering a forward dividend yield of 1.97%, which the company supports with free cash flows of $4.65 billion.
At the close of the first quarter of 2022, 68 hedge funds were eager on Freeport-McMoRan Inc. (NYSE:FCX) and held stakes worth $4.10 billion in the company. This is compared to 66 hedge funds in Q4 2021 with stakes worth $3.77 billion. The hedge fund sentiment for the stock is positive.
As of June 30, Fisher Asset Management owns more than 52 million shares of Freeport-McMoRan Inc. (NYSE:FCX) and is the largest shareholder in the company. The investment covers 1.07% of Ken Fisher’s 13F portfolio.
Here is what investment management firm, Carillon Tower Advisers, had to say about Freeport-McMoRan Inc. (NYSE:FCX) in its “Carillon Scout Mid Cap Fund” first-quarter 2022 investor letter:
“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”
You can also take a look at 10 Best Construction Materials Stocks To Buy Now and Top 15 Building Materials Companies in USA.
