The materials sector includes companies dedicated to the discovery, development and processing of raw materials, which are used in a wide range of sectors and industries. Materials stocks include manufacturers of products as varied as plastics, fertilizers, paper, concrete, and metals. Prominent names include Ecolab Inc. (ECL), Air Products and Chemicals Inc. (APD) and DuPont de Nemours Inc. (DD).
Materials stocks, represented by Materials Select Sector SPDR ETF (XLB), have nearly matched the overall market performance. The XLB’s total return was 38.7% over the past 12 months, slightly ahead of the Russell 1000’s total return of 38.6%. These market performance numbers and all statistics in the tables below are as of July 15, 2021.
Here are the top 3 materials stocks with the best value, the fastest growth, and the most momentum.
These are the materials stocks with the lowest price-to-earnings (P / E) ratio in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.
|Stock of better value materials|
|Price ($)||Market Cap ($ B)||Final 12-month P / E ratio|
|Celanese Corp. (WHAT)||155.96||17.6||8.7|
|The Mosaic Co. (MOS)||30.53||11.6||11.4|
|NewMarket Corp. (NEW)||307.60||3.4||13.2|
- Celanese Corp .: Celanese is a global producer of advanced chemicals and materials. Produces acetyl, acetate, vinyl emulsion, and engineering polymers. On July 14, Celanese declared a cash dividend of $ 0.68 per share, payable on August 9 to shareholders of record as of July 26, 2021.
- The Mosaic Co .: The Mosaic Co. is a producer and distributor of crop nutrition products. The company supplies feed ingredients, concentrated phosphates, potash and related products to the agricultural industry worldwide.
- NewMarket Corp .: NewMarket develops, manufactures and blends additives for fuels and lubricants. The company supplies its products to refineries and other companies that sell petroleum products. Its products are used in transportation and industrial equipment.
These are the top materials stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent YoY quarterly revenue growth and their most recent YoY quarterly earnings per share ( EPS) growth. Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.
|Fastest growing stock of materials|
|Price ($)||Market Cap ($ B)||EPS growth (%)||Revenue growth (%)|
|Element Solutions Inc. (ESI)||23.61||5.8||1,000||21.5|
|Southern Copper Corp. (SCCO)||63.96||49.5||253.6||47.3|
|LyondellBasell Industries NV (LYB)||101.00||33.8||657.1||21.2|
- Element Solutions Inc .: Element Solutions is a global specialty chemicals company. It manufactures and supplies chemicals used in consumer electronics, communications infrastructure, automobiles, industrial surface finishing, consumer packaging, offshore oil production and drilling, and more. In June, Element Solutions announced the planned acquisition of surface finishing chemicals company Coventya Holding SAS. Under the agreement, Element will pay approximately 420 million euros ($ 495.7 million) in cash. The transaction is expected to close in late 2021.
- Southern Copper Corp .: Southern Copper explores, develops and produces copper. In the process, the company also produces various by-products including molybdenum, silver, zinc, sulfuric acid, and other metals. It carries out mining operations in Peru and Mexico.
- LyondellBasell Industries NV: LyondellBasell Industries manufactures petrochemicals that are used in a wide range of industries, including manufacturing personal care products, lightweight plastics, food packaging, automotive components, medical, biofuels, and more. In June, LyondellBasell announced that it had acquired Malaysia-based PolyPacific Polymers Sdn. Bhd. The company produces reinforced and modified polyolefin compounds. The company will undergo a name and branding change, and employees will become LyondellBasell employees. Terms of the deal were not disclosed. The value of the transaction was not mentioned in the press release.
These are the stocks of materials that had the highest total throughput during the last 12 months.
|Stock of materials with greater dynamism|
|Price ($)||Market Cap ($ B)||Total return at 12 months (%)|
|Cleveland-Cliffs Inc. (CLF)||21.62||10.8||259.1|
|Olin Corp. (OLN)||42.90||6.8||254.3|
|United States Steel Corp. (X)||23.20||6.3||189.2|
|Russell 1000||N / A||N / A||38.6|
|Materials Select Sector SPDR ETF (XLB)||N / A||N / A||38.7|
- Cleveland-Cliffs Inc .: Cleveland-Cliffs is a major North American flat rolled steel producer and a major supplier of iron ore pellets.
- Olin Corp .: Olin manufactures and distributes chemicals, such as chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, and hydrochloric acid. It also manufactures sports ammunition and small-caliber military ammunition. On July 1, the company announced that it had entered into an agreement with chemical manufacturer ASHTA Chemicals Inc. to buy and sell chlorine produced at ASHTA’s Ashtabula, Ohio facility. The agreement is expected to optimize logistics and reduce costs for both companies.
- United States Steel Corp .: United States Steel is an integrated steel producer that manufactures a variety of steel products in facilities in North America and Europe. The company serves clients in the automotive, container, industrial, construction, oil and gas, and appliance industries. On June 17, the company published guidance for the second quarter of 2021, including the expected adjusted EBITDA of $ 1.2 billion, which is more than double that of the first quarter of 2021. The increased guidance was driven by factors including high prices and strong demand.
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