Materials in 2026 remain tied to manufacturing trends, construction demand, and commodity balances. Industrial stabilization can help the group quickly; weaker global growth pressures both volumes and pricing.
Sector AnalysisETF: XLBUpdated May 6, 2026
Basic Materials Sector Stocks
Basic Materials includes companies that extract, process, or manufacture inputs for the broader economy — chemicals, metals, mining, packaging, and construction materials. Demand depends on industrial production, construction, and commodity pricing, making the sector cyclical and globally sensitive. XLB is the standard benchmark. Screening helps distinguish high-quality operators from stocks whose earnings are just a short-term commodity function.
Research ByVCP Scanner Editorial Team
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| Ticker | Company | Price | Mkt Cap | P/E | ROE | Div Yield | |
|---|---|---|---|---|---|---|---|
| Linde plc | $500.39 | $231.88B | 34.3 | 17.4% | 1.2% | ||
| BHP Group Limited | $79.24 | $201.2B | 22.3 | 17.8% | 3.2% | ||
| Rio Tinto Group | $100.50 | $200.61B | 14.2 | 20.2% | 4.3% | ||
| Southern Copper Corporation | $171.03 | $141.28B | 32.6 | 42.6% | 1.7% | ||
| Newmont Corporation | $109.01 | $120.78B | 17.0 | 22.1% | 0.9% | ||
| POSCO Holdings Inc. | $85.32 | $103.23B | 247.8 | 1.1% | 0.6% | ||
| Agnico Eagle Mines Limited | $178.14 | $89.25B | 20.1 | 19.6% | 0.8% | ||
| Freeport-McMoRan Inc. | $57.70 | $82.93B | 38.0 | 7.4% | 1% | ||
| The Sherwin-Williams Company | $312.46 | $77.06B | 30.4 | 59.4% | 1% | ||
| CRH plc | $112.50 | $75.17B | 20.4 | 15.7% | 1.1% | ||
| Ecolab Inc. | $257.65 | $72.77B | 35.4 | 22.3% | 1% | ||
| Vale S.A. | $15.93 | $69.53B | 27.5 | 7.2% | 5.2% | ||
| Air Products and Chemicals, Inc. | $303.93 | $67.67B | -171.7 | -2.2% | 2.3% | ||
| Barrick Mining Corporation | $38.73 | $64.9B | 13.2 | 14.4% | 1.3% | ||
| Wheaton Precious Metals Corp. | $125.24 | $56.87B | 38.1 | 18.8% | 0.5% | ||
| Corteva, Inc. | $83.91 | $56.33B | 52.4 | 4.5% | 0.8% | ||
| Nucor Corporation | $232.07 | $52.86B | 30.9 | 8% | 1% | ||
| AngloGold Ashanti Plc | $90.98 | $45.93B | 17.5 | 28.6% | 4% | ||
| ArcelorMittal S.A. | $58.18 | $44.28B | 14.2 | 5.8% | 0.9% | ||
| Franco-Nevada Corporation | $225.07 | $43.39B | 38.4 | 16.6% | 0.6% | ||
| Vulcan Materials Company | $291.51 | $37.82B | 35.9 | 13% | 0.7% | ||
| Gold Fields Limited | $41.76 | $37.38B | 30.3 | 24.9% | 0.9% | ||
| Nutrien Ltd. | $77.24 | $37.33B | 16.3 | 9.3% | 2.9% | ||
| Martin Marietta Materials, Inc. | $606.10 | $36.56B | 32.2 | 11.7% | 0.5% | ||
| Kinross Gold Corporation | $28.81 | $34.5B | 14.5 | 31% | 0.4% | ||
| Steel Dynamics, Inc. | $237.46 | $34.4B | 29.7 | 13.3% | 0.8% | ||
| Amrize Ltd | $53.37 | $30.26B | 24.9 | 10.2% | — | ||
| Dow Inc. | $40.80 | $29.36B | -11.1 | -14.8% | 5.1% | ||
| Teck Resources Limited | $57.80 | $27.83B | 27.8 | 5.3% | 0.6% | ||
| LyondellBasell Industries N.V. | $77.76 | $25.05B | -33.1 | -6.5% | 7% |
Market Comparison
Basic Materials Sector vs S&P 500 in one glance
This should answer the only question that matters here: are you getting something better than the market for the price you are paying?
Price vs market
Near market
Valuation is broadly in line with the market
Quality vs market
Lower quality
Net margin 14.9% vs 24.3%; ROE 16.3% vs 44.1%
Income vs market
Higher yield
Sector yield 1.44% vs 0.99%
Comparison table
Winner should register in under three seconds.
| Metric | Basic Materials Sector | S&P 500 | Delta | Winner |
|---|---|---|---|---|
Trailing P/E Close to market | 34.1x | 33.6x | +1% | Near parity |
Forward P/E Sector is cheaper | 19.3x | 24.4x | -21% | Sector cheaper |
EV/EBITDA Sector is cheaper | 16.1x | 22.0x | -27% | Sector cheaper |
Net Margin Market is stronger | 14.9% | 24.3% | -39% | S&P 500 stronger |
ROE Market is stronger | 16.3% | 44.1% | -63% | S&P 500 stronger |
Dividend Yield Sector is stronger | 1.4% | 1.0% | +45% | Sector yields more |
History check
Is the current premium normal?
1-year contextRich vs history
100th percentile; range 24.9x to 34.1x
5-year contextRich vs history
100th percentile; range 13.0x to 34.1x
Internal health
Median revenue growth7.9%
Median gross margin35.4%
Median FCF margin10.2%
Against the S&P 500, Basic Materials Sector currently trades at 34.1x trailing earnings versus 33.6x for the broad market. That premium only makes sense if investors keep believing the sector deserves better margins, stronger returns on equity, and more durable growth than the index overall.
Industry Breakdown
Where the real weight sits inside Basic Materials Sector
These cards are built from the full sector universe, then ranked by market cap so you can see which pockets are leading, rich, resilient, or dangerously concentrated.
Industry Scoreboard
Fast scan of Basic Materials Sector industry setups
Use this table to spot heavyweights, cheap pockets, leaders, and genuinely beaten-down areas before opening the detailed cards below.
Specialty Chemicals 54 stocks | 23.7% $706.11B | Leading +8.9% median 3M | Fair 19.3x median Fwd P/E | Mixed 5.7% median ROE | Weak -0.0% rev growth | Mixed Concentrated |
Gold 51 stocks | 22.0% $656.26B | Neutral -8.2% median 3M | Cheap 8.6x median Fwd P/E | High 6.5% median ROE | Strong 50.3% rev growth | Attractive Diversified |
Industrial Materials 42 stocks | 18.3% $545.42B | Leading +1.3% median 3M | Premium 22.5x median Fwd P/E | Weak -20.1% median ROE | Strong 4.8% rev growth | Mixed One-name heavy |
Steel 23 stocks | 10.0% $297.11B | Leading +1.6% median 3M | Fair 16.2x median Fwd P/E | Weak 2.4% median ROE | Weak -0.8% rev growth | Mixed Concentrated |
Copper 5 stocks | 8.0% $238.24B | Neutral -9.7% median 3M | Fair 14.3x median Fwd P/E | High 19.2% median ROE | Strong 10.7% rev growth | Watchlist One-name heavy |
Construction Materials 19 stocks | 7.3% $218.13B | Neutral -7.6% median 3M | Fair 18.6x median Fwd P/E | Mixed 11.2% median ROE | Weak 5.1% rev growth | Mixed Concentrated |
Agricultural Inputs 18 stocks | 4.7% $141.33B | Neutral +5.3% median 3M | Fair 13.9x median Fwd P/E | High 3.5% median ROE | Strong 3.5% rev growth | Watchlist One-name heavy |
Chemicals 16 stocks | 1.7% $51.86B | Leading +15.2% median 3M | Fair 12.3x median Fwd P/E | Weak -10.6% median ROE | Weak -4.1% rev growth | Mixed One-name heavy |
Precious Metals 19 stocks | 1.3% $38.53B | Neutral -5.2% median 3M | Premium 17.4x median Fwd P/E | Mixed -2.1% median ROE | Average 41.1% rev growth | Mixed Diversified |
Silver 4 stocks | 1.1% $33.56B | Neutral -4.6% median 3M | Premium 18.2x median Fwd P/E | High 0.3% median ROE | Strong 37.7% rev growth | Mixed One-name heavy |
Aluminum 4 stocks | 1.0% $29.49B | Leading +33.6% median 3M | Cheap 9.8x median Fwd P/E | Mixed 18.6% median ROE | Strong 20.5% rev growth | Attractive One-name heavy |
Paper & Forest Products 11 stocks | 1.0% $28.58B | Lagging -18.6% median 3M | Cheap 15.7x median Fwd P/E | Weak -7.2% median ROE | Weak -4.9% rev growth | Broken Concentrated |
Showing 12 of 12 industries in Basic Materials Sector.
Setup is a quick read of value, quality, growth, momentum, and concentration together.
23.7% OF SECTOR
Specialty Chemicals
Fairly pricedMixed qualityLeadingWeak growthConcentrated
Specialty Chemicals is a core pocket of basic materials, still leading on price action; growth is softer than the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is concentrated in a few names.
Median 3M return
+8.9%
Forward P/E
19.3x
Top 3 weight
54.1%
Market cap
$706.11B
Coverage
54 stocks
Breadth
59% pos. in 3M
Open filtered screener
22.0% OF SECTOR
Gold
Cheap vs sectorHigh qualityNeutralStrong growthDiversified
Gold is a core pocket of basic materials, moving broadly in line with the rest of the sector; growth is running above sector norms, business quality is stronger than the sector median, and valuation sits below sector norms.
Median 3M return
-8.2%
Forward P/E
8.6x
Top 3 weight
41.9%
Market cap
$656.26B
Coverage
51 stocks
Breadth
20% pos. in 3M
Open filtered screener
18.3% OF SECTOR
Industrial Materials
Premium vs sectorWeak qualityLeadingStrong growthOne-name heavy
Industrial Materials is a major pocket of basic materials, still leading on price action; growth is running above sector norms, quality metrics trail the sector median, and valuation still carries a premium. Leadership is extremely concentrated in one or two names.
Median 3M return
+1.3%
Forward P/E
22.5x
Top 3 weight
86.4%
Market cap
$545.42B
Coverage
42 stocks
Breadth
53% pos. in 3M
Open filtered screener
10.0% OF SECTOR
Steel
Fairly pricedWeak qualityLeadingWeak growthConcentrated
Steel is a meaningful pocket of basic materials, still leading on price action; growth is softer than the sector average, quality metrics trail the sector median, and valuation is close to sector norms. Leadership is concentrated in a few names.
Median 3M return
+1.6%
Forward P/E
16.2x
Top 3 weight
67.4%
Market cap
$297.11B
Coverage
23 stocks
Breadth
52% pos. in 3M
Open filtered screener
8.0% OF SECTOR
Copper
Fairly pricedHigh qualityNeutralStrong growthOne-name heavy
Copper is a meaningful pocket of basic materials, moving broadly in line with the rest of the sector; growth is running above sector norms, business quality is stronger than the sector median, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
-9.7%
Forward P/E
14.3x
Top 3 weight
97.8%
Market cap
$238.24B
Coverage
5 stocks
Breadth
0% pos. in 3M
Open filtered screener
7.3% OF SECTOR
Construction Materials
Fairly pricedMixed qualityNeutralWeak growthConcentrated
Construction Materials is a meaningful pocket of basic materials, moving broadly in line with the rest of the sector; growth is softer than the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is concentrated in a few names.
Median 3M return
-7.6%
Forward P/E
18.6x
Top 3 weight
68.6%
Market cap
$218.13B
Coverage
19 stocks
Breadth
16% pos. in 3M
Open filtered screener
4.7% OF SECTOR
Agricultural Inputs
Fairly pricedHigh qualityNeutralStrong growthOne-name heavy
Agricultural Inputs is a smaller pocket of basic materials, moving broadly in line with the rest of the sector; growth is running above sector norms, business quality is stronger than the sector median, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
+5.3%
Forward P/E
13.9x
Top 3 weight
80.4%
Market cap
$141.33B
Coverage
18 stocks
Breadth
61% pos. in 3M
Open filtered screener
1.7% OF SECTOR
Chemicals
Fairly pricedWeak qualityLeadingWeak growthOne-name heavy
Chemicals is a smaller pocket of basic materials, still leading on price action; growth is softer than the sector average, quality metrics trail the sector median, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
+15.2%
Forward P/E
12.3x
Top 3 weight
81.3%
Market cap
$51.86B
Coverage
16 stocks
Breadth
69% pos. in 3M
Open filtered screener
1.3% OF SECTOR
Precious Metals
Premium vs sectorMixed qualityNeutralAverage growthDiversified
Precious Metals is a smaller pocket of basic materials, moving broadly in line with the rest of the sector; growth is near the sector average, quality signals are mixed, and valuation still carries a premium.
Median 3M return
-5.2%
Forward P/E
17.4x
Top 3 weight
55.3%
Market cap
$38.53B
Coverage
19 stocks
Breadth
37% pos. in 3M
Open filtered screener
1.1% OF SECTOR
Silver
Premium vs sectorHigh qualityNeutralStrong growthOne-name heavy
Silver is a smaller pocket of basic materials, moving broadly in line with the rest of the sector; growth is running above sector norms, business quality is stronger than the sector median, and valuation still carries a premium. Leadership is extremely concentrated in one or two names.
Median 3M return
-4.6%
Forward P/E
18.2x
Top 3 weight
99.2%
Market cap
$33.56B
Coverage
4 stocks
Breadth
25% pos. in 3M
Open filtered screener
1.0% OF SECTOR
Aluminum
Cheap vs sectorMixed qualityLeadingStrong growthOne-name heavy
Aluminum is a smaller pocket of basic materials, still leading on price action; growth is running above sector norms, quality signals are mixed, and valuation sits below sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
+33.6%
Forward P/E
9.8x
Top 3 weight
90.3%
Market cap
$29.49B
Coverage
4 stocks
Breadth
100% pos. in 3M
Open filtered screener
1.0% OF SECTOR
Paper & Forest Products
Cheap vs sectorWeak qualityLaggingWeak growthConcentrated
Paper & Forest Products is a smaller pocket of basic materials, currently lagging on price action; growth is softer than the sector average, quality metrics trail the sector median, and valuation sits below sector norms. Leadership is concentrated in a few names.
Median 3M return
-18.6%
Forward P/E
15.7x
Top 3 weight
74.3%
Market cap
$28.58B
Coverage
11 stocks
Breadth
18% pos. in 3M
Open filtered screener
Sector Outlook
Basic Materials Sector Outlook - Q1 2026
Updated Q1 2026
Chemical and specialty materials businesses may outperform pure commodity names if they have better pricing power. Watch inventory normalization and whether cost pass-through stays intact.
Quality shows up in margins, asset position, and balance sheet flexibility — not just the lowest forward multiple.
Earnings Calendar
Upcoming Earnings in Basic Materials Sector
Earnings reports are the biggest near-term catalysts for sector moves. Track which names report in the next 60 days and size your positions accordingly.
No earnings in the next 60 days
Check individual stock pages for the latest earnings dates and estimated EPS.
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