In this piece, we’ll take a look at the 5 Best Materials Stocks To Invest In. For more such companies, go to 13 Best Materials Stocks To Invest In.
5. Nucor Corporation (NYSE:NUE)
Forward P/E ratio as of December 16: 10.10
Number of Hedge Fund Holders: 41
Nucor Corporation (NYSE:NUE) is a steel manufacturer and distributor. The company’s product portfolio includes carbon and alloy steel, steel joints, steel deck, cold-finished steel, steel grinding balls, steel bearing products, and metal building systems.
On December 6, 2022, Andreas Bokkenheuser, an analyst at UBS, increased his price target on Nucor Corporation (NYSE:NUE) to $145 while keeping a Neutral rating on the stock. The analyst believes that the company is benefitting from a decline in raw materials costs and the improved profitability will continue to support returns to shareholders.
As per Insider Monkey’s database, 41 hedge funds owned stakes in Nucor Corporation (NYSE:NUE) at the end of the September quarter. Citadel Investment Group was the most bullish fund on the company’s stock at the end of Q3 2022.
4. Olin Corporation (NYSE:OLN)
Forward P/E ratio as of December 16: 8.14
Number of Hedge Fund Holders: 44
Based in Virginia, Olin Corporation (NYSE:OLN) is an American company that primarily manufactures chlorine, sodium hydroxide, and ammunition. Olin Corporation (NYSE:OLN) has three operating divisions: Epoxy, Chlor Alkali Products and Vinyls, and Winchester. The Chlor Alkali Products and Vinyls segment is the biggest business segment of the company accounting for 46% of 2021 revenue.
On November 01, 2022, Michael Leithead, an analyst at Barclays, increased his target price on Olin Corporation (NYSE:OLN) to $60. The analyst currently has an Equal Weight rating on the stock after the announcement of the company’s Q3 results.
At the end of Q3 2022, 44 hedge funds in Insider Monkey’s database were bullish on Olin Corporation (NYSE:OLN) at the end of the quarter. Sachem Head Capital remained the leading stakeholder of the company at the end of Q3 2022.
3. The Mosaic Company (NYSE:MOS)
Forward P/E ratio as of December 16: 4.75
Number of Hedge Fund Holders: 46
The Mosaic Company (NYSE:MOS) is a crop nutrition company that manufactures and distributes phosphate, potassium, and urea via various international distribution networks. The company is the largest producer of phosphate and potash fertilizer in the United States. The Mosaic Company (NYSE:MOS)’s business is divided into three divisions: phosphates, potash, and mosaic fertilizers.
On November 9, 2022, Christopher Parkinson, an analyst at Mizuho, reduced his price target on The Mosaic Company (NYSE:MOS) to $69 while keeping a Buy rating on the stock. According to the analyst, the Q3 report did not do much to change the views of bulls or bears on the stock.
As per Insider Monkey’s database, 46 hedge funds remained bullish on The Mosaic Company (NYSE:MOS) at the end of the third quarter. Soroban Capital Partners had the biggest stake in the company at the end of the third quarter.
Ariel Investment made the following comment about The Mosaic Company (NYSE:MOS) in its Q3 2022 investor letter:
Producer and marketer of crop nutrients The Mosaic Company (NYSE:MOS) also traded up in the period on solid financial results. MOS continues to demonstrate its ability to raise prices and offset input cost inflation, as well as return significant capital to shareholders through buybacks. Meanwhile, trade flows have shifted with Russia and Belarus, the second and third largest fertilizer exporters globally, banning exports and facing sanctions imposed by the West. As a result, MOS is expanding production to help meet global demand. Given management’s optimistic outlook and disciplined approach towards capital allocation, we continue to believe the company is well[1]positioned from a risk/reward standpoint.
2. Teck Resources Limited (NYSE:TECK)
Forward P/E ratio as of December 16: 8.84
Number of Hedge Fund Holders: 47
Teck Resources Limited (NYSE:TECK) is a natural resources mining company that engages in the exploration, development, smelting, and refining of metals and minerals. Steelmaking coal, copper, and zinc are among the company’s leading products.
On October 31, 2022, Lucas Pipes, an analyst at B. Riley, reduced his price target on Teck Resources Limited (NYSE:TECK) to C$48 while keeping a Buy rating on the stock. The analyst has a bullish outlook on coal prices in the near term and copper demand in the long run, which is why he keeps a Buy rating on Teck Resources Limited (NYSE:TECK).
According to Insider Monkey’s database, 47 hedge funds held stakes in Teck Resources Limited (NYSE:TECK) at the end of the third quarter ending September 2022. Soroban Capital Partners remained the leading stakeholder in the company at the end of Q3 2022.
1. Nutrien Ltd. (NYSE:NTR)
Forward P/E ratio as of December 16: 6.08
Number of Hedge Fund Holders: 52
Nutrien Ltd. (NYSE:NTR) is a Canadian fertilizer company that manufactures and distributes potash, nitrogen, phosphate, and ammonium sulfate. The company is the world’s largest potash manufacturer and the third-biggest nitrogen fertilizer producer. Nutrien Ltd. (NYSE:NTR) sells its products worldwide to industrial and agricultural customers. The company employs over 23,500 people and operates over 2,000 retail sites in North America, South America, and Australia.
On November 11, 2022, Benjamin Theurer, an analyst at Barclays, reduced his price target on Nutrien Ltd. (NYSE:NTR) to $95 from $105 while keeping an Overweight rating on the stock. The company’s Q3 2022 revenues were reported at $7.98 billion, missing market expectations by $663.20 million. The company’s Normalized EPS in the last quarter stood at $2.51, missing estimates by $1.43.
As per Insider Monkey’s database, 52 hedge funds remained bullish on Nutrien Ltd. (NYSE:NTR) at the end of Q3 2022. First Eagle Investment Management came out to be the biggest holder of the company’s shares at the end of the quarter.
ClearBridge Investments made the following comment about Nutrien Ltd. (NYSE:NTR) in its Q3 2022 investor letter:
However, we believe this is exactly the kind of environment that separates the highest-quality companies from their peers and allows them to strengthen their competitive positioning. For example, Nutrien Ltd. (NYSE:NTR), a Canadian fertilizer company, was a top contributor during the quarter. While the war in Ukraine and economic sanctions on Russia have significantly reduced the output of two of the world’s largest agricultural producers, Nutrien has benefited from a strong global agricultural cycle and from farmers seeking to increase their output and capitalize on higher agricultural prices.
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