Top Materials Stocks for September 2021

3 years ago 422

CE, FCX, and OLN are apical for value, growth, and momentum, respectively

The materials assemblage includes companies engaged successful the discovery, development, and processing of raw materials, which are utilized crossed a wide scope of sectors and industries. Materials stocks see manufacturers of products arsenic varied arsenic plastic, fertilizer, paper, concrete, and metals. Prominent names see Ecolab Inc. (ECL), Air Products and Chemicals Inc. (APD), and DuPont de Nemours Inc. (DD).

Materials stocks, represented by the Materials Select Sector SPDR ETF (XLB), person somewhat outperformed the broader market. The XLB's full instrumentality was 35.4% implicit the past 12 months, conscionable up of the Russell 1000's full instrumentality of 32.9%. These marketplace show numbers and each statistic successful the tables beneath are arsenic of Aug. 19, 2021.

Here are the apical 3 materials stocks with the champion value, the fastest growth, and the astir momentum.

Best Value Materials Stocks

These are the materials stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits tin beryllium returned to shareholders successful the signifier of dividends and buybacks, a debased P/E ratio shows you’re paying little for each dollar of nett generated.

Best Value Materials Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Celanese Corp. (CE) 154.83 17.2 7.1
DuPont de Nemours Inc. (DD) 73.91 38.7 7.4
LyondellBasell Industries NV (LYB) 100.25 33.5 8.2

Source: YCharts

  • Celanese Corp.: Celanese is simply a planetary shaper of chemicals and precocious materials. It produces acetyl, acetate, vinyl emulsion, and engineered polymers.
  • DuPont de Nemours Inc.: DuPont de Nemours produces operation materials, fabrics, electronics, aesculapian devices, resins, and adhesives for the energy, automotive and different industries. DuPont reported nett income of $487 cardinal for Q2 2021 versus nett nonaccomplishment of $2.5 cardinal for Q2 2020 connected surging nett income year-over-year (YOY). Performance was driven by the betterment of extremity markets specified arsenic automotive, construction, mobile devices and semiconductors.
  • LyondellBasell Industries NV: LyondellBasell Industries makes petrochemical products that are utilized successful a wide scope of industries, including successful the manufacturing of idiosyncratic attraction products, lightweight plastics, nutrient packaging, automotive components, for aesculapian applications, biofuels, and more. On Aug. 20 the institution announced a dividend of $1.13 per share, to beryllium paid Sep. 7, 2021 to shareholders of grounds arsenic of Aug. 30.

Fastest Growing Materials Stocks

These are the apical materials stocks arsenic ranked by a growth model that scores companies based connected a 50/50 weighting of their astir caller quarterly year-over-year (YOY) percentage revenue growth and their astir caller quarterly YOY earnings-per-share (EPS) growth. Both income and net are captious factors successful the occurrence of a company. Therefore ranking companies by lone 1 maturation metric makes a ranking susceptible to the accounting anomalies of that 4th (such arsenic changes successful taxation instrumentality oregon restructuring costs) that whitethorn marque 1 oregon the different fig unrepresentative of the concern successful general. Companies with quarterly EPS oregon gross maturation of implicit 2,500% were excluded arsenic outliers.

Fastest Growing Materials Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Freeport-McMoRan Inc. (FCX) 33.88 49.7 2,330 88.2
Nucor Corp. (NUE) 120.77 35.5 1,300 103.1
Steel Dynamics Inc. (STLD) 69.24 14.1 822.2 113.2

Source: YCharts

  • Freeport-McMoRan Inc.: Freeport-McMoRan is simply a starring planetary mining institution with important reserves of copper, gold, and molybdenum. The institution has operations successful North and South America arsenic good arsenic successful Indonesia.
  • Nucor Corp.: Nucor is simply a shaper of c and alloy steel, alloy deck, alloy bearing products, and acold finished steel. The institution besides acts arsenic a broker of assorted types of metals. Nucor announced connected Aug. 9 that it had completed the acquisition of Cornerstone Building Brands' insulated metallic panels concern for a currency acquisition terms of astir $1 billion. The acquisition is expected to heighten Nucor's offerings of the high-end architectural, acold storage, and warehousing markets.
  • Steel Dynamics Inc.: Steel Dynamics is simply a carbon-steel shaper and metals recycler. The institution offers products including level rolled alloy sheet, structural beams, and engineered barroom special-bar-quality. Steel Dynamics announced connected Aug. 20 a quarterly currency dividend of $0.26 per share, payable connected Oct. 15 to shareholders of grounds arsenic of Sep. 30, 2021.

Materials Stocks with the Most Momentum

These are the materials stocks that had the highest full instrumentality implicit the past 12 months.

Materials Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Olin Corp. (OLN) 45.43 7.3 329.6
Cleveland-Cliffs Inc. (CLF) 25.04 12.5 290.6
United States Steel Corp. (X) 29.45 8.0 272.3
Russell 1000 N/A N/A 32.9
Materials Select Sector SPDR ETF (XLB) N/A N/A 35.4

Source: YCharts

  • Olin Corp.: Olin manufactures and distributes chemic products, specified arsenic chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, and hydrochloric acid. It besides makes sporting ammunition and tiny caliber subject ammunition. Olin reported nett income of $355.8 cardinal for Q2 2021 arsenic compared with nett nonaccomplishment for Q2 2020, arsenic good arsenic 79.0% YOY maturation successful sales. Record quarterly results successful the company's epoxy concern contributed to the performance.
  • Cleveland-Cliffs Inc.: Cleveland-Cliffs is simply a large North American flat-rolled alloy shaper and large supplier of robust ore pellets.
  • United States Steel Corp.: United States Steel is an integrated alloy shaper that makes a assortment of alloy products astatine facilities successful North America and Europe. The institution serves clients successful the automotive, container, industrial, construction, lipid and gas, and appliance industries. United States Steel reported nett income of $1.0 cardinal for Q2 2021 versus nett nonaccomplishment 1 twelvemonth prior. Net income climbed by 140.3% YOY driven by an wide beardown marketplace environment.

The comments, opinions and analyses expressed herein are for informational purposes lone and should not beryllium considered idiosyncratic concern proposal oregon recommendations to put successful immoderate information oregon to follow immoderate concern strategy. While we judge the accusation provided herein is reliable, we bash not warrant its accuracy oregon completeness. The views and strategies described connected our contented whitethorn not beryllium suitable for each investors. Because marketplace and economical conditions are taxable to accelerated change, each comments, opinions, and analyses contained wrong our contented are rendered arsenic of the day of the posting and whitethorn alteration without notice. The worldly is not intended arsenic a implicit investigation of each worldly information regarding immoderate country, region, market, industry, investment, oregon strategy.

Article Sources

Investopedia requires writers to usage superior sources to enactment their work. These see achromatic papers, authorities data, archetypal reporting, and interviews with manufacture experts. We besides notation archetypal probe from different reputable publishers wherever appropriate. You tin larn much astir the standards we travel successful producing accurate, unbiased contented successful our editorial policy.

Read Entire Article