Companies in the materials sector handle raw materials. Their involvement with these materials can be through discovery, development or processing. Sub-sectors within this group include forestry, mining and chemical production.
Demand for these raw materials and products can fluctuate considerably. This demand tends to depend on the overall strength of the economy, so materials stocks are rather tied to general prosperity.
Another challenge for the sector comes in the form of environmental issues. Many of the raw materials that the sector relies upon are finite, meaning that supply will one day dry up. Additionally, extraction of materials, such as through chopping down a forest, can be damaging or controversial.
Below are some of the most prominent players in the industry:
DuPont (NYSE: DD)
Linde Plc (NYSE: LIN)
EcoLab Inc (NYSE: ECL)
Sherwin-Williams Company (NYSE: SHW)
Air Products and Chemicals (NYSE: APD)
Newmont Mining Corp (NYSE: NEM)
Freeport-Mcmoran Inc (NYSE: FCX)
Q4 2021 Materials momentum stocks
Momentum refers to the speed or rate of change in stock price. Healthy price trends tend to exhibit strong momentum, and price weakens when momentum subsides. The following stocks have been enjoying a rise in momentum in recent weeks. Can their streak continue through Q4?
Haynes International, Inc.
Haynes International, Inc. develops, manufactures, markets, and distributes nickel and cobalt-based alloys in sheet, coil, and plate forms in the United States, Europe, Asia, and internationally. HAYN stock has been enjoying increased price momentum over the past year.
The Mosaic Company
The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. MOS stock is enjoying price momentum, along with growth in sales and earnings per share.
Hawkins, Inc.blends, manufactures, and distributes chemicals and other specialty ingredients in the United States and internationally. HWKN stock is enjoying price momentum and earnings per share growth.
Q4 2021 Materials growth stocks
Growth in sales and/or earnings per share indicates a business that is growing. Growth stocks can make very lucrative investments when the share price rises in time with the business expansion. But growth stocks are also risky as investment analysis is based on future price action rather than historical price performance. Famous growth investors include Philip Fisher, T. Rowe Price, and Jim Slater.
AdvanSix Inc.manufactures and sells polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, a synthetic material used to produce fibers, filaments, engineered plastics, and films. ASIX stock has been gaining momentum and is enjoying exceptional growth in sales and earnings per share.
Smith-Midland Corporation, through its subsidiaries, invents, develops, manufactures, markets, leases, licenses, sells, and installs precast concrete products primarily for use in the construction, highway, utilities, and farming industries. The company is expanding into California, and expectations for increased infrastructure spending are high.
Barrick Gold Corporation
Barrick Gold Corporation engages in the exploration, mine development, production, and sale of gold and copper properties. It has ownership interests in producing gold mines located in Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, Tanzania, and the United States. Consolidation in the gold industry is increasingly likely, and Barrick is known for its M&A growth.
Q4 2021 Materials value stocks
Value investing is a prevalent type of stock market investing advocated by Billionaire investor Warren Buffett. When growth stocks are in favor, value stocks tend to be less popular and vice versa. Value stocks should be trading for less than their intrinsic or book value.
Koppers Holdings Inc.
Koppers Holdings Inc.is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds. KOP stock appears in the value category for price-to-sales (P/S), price-to-earnings (P/E), and price-to-book ratios (P/B). Meanwhile, net income is growing.
Steel Dynamics Inc.
Steel Dynamics Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. STLD stock appears in the value category for P/S, P/E, and P/B ratios. Steel Dynamics has been enjoying growth in both EPS and sales.
Clearwater Paper Corporation
Clearwater Paper Corporation produces and sells private label tissue and bleached paperboard products in the United States and internationally. CLW stock is enjoying recent price momentum. It has a reasonable P/B ratio and low P/S.