S&P 500   4,071.70
DOW   34,429.88
QQQ   292.55
Get Rid of Your Siri Remote Once and for All This Year
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Moldova signs new energy deal that could ease blackout risk
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
OPEC+ oil producers face uncertainty over Russian sanctions
No OPEC+ oil shakeup as Russian price cap stirs uncertainty
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
OPEC keeps oil targets amid uncertainty on Russian sanctions
FDA change ushers in cheaper, easier-to-get hearing aids
S&P 500   4,071.70
DOW   34,429.88
QQQ   292.55
Get Rid of Your Siri Remote Once and for All This Year
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Moldova signs new energy deal that could ease blackout risk
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
OPEC+ oil producers face uncertainty over Russian sanctions
No OPEC+ oil shakeup as Russian price cap stirs uncertainty
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
OPEC keeps oil targets amid uncertainty on Russian sanctions
FDA change ushers in cheaper, easier-to-get hearing aids
S&P 500   4,071.70
DOW   34,429.88
QQQ   292.55
Get Rid of Your Siri Remote Once and for All This Year
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Moldova signs new energy deal that could ease blackout risk
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
OPEC+ oil producers face uncertainty over Russian sanctions
No OPEC+ oil shakeup as Russian price cap stirs uncertainty
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
OPEC keeps oil targets amid uncertainty on Russian sanctions
FDA change ushers in cheaper, easier-to-get hearing aids
S&P 500   4,071.70
DOW   34,429.88
QQQ   292.55
Get Rid of Your Siri Remote Once and for All This Year
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Moldova signs new energy deal that could ease blackout risk
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
OPEC+ oil producers face uncertainty over Russian sanctions
No OPEC+ oil shakeup as Russian price cap stirs uncertainty
Millionaire Investor Reveals: “How I Made My Second Fortune… By Avoiding 99% of Stocks” (Ad)pixel
OPEC keeps oil targets amid uncertainty on Russian sanctions
FDA change ushers in cheaper, easier-to-get hearing aids

3 Materials Stocks That May Earn a Place on Your Watchlist

3 Materials Stocks That May Earn a Place on Your Watchlist

This may seem like an odd time to be looking at materials stocks. After all, these are stocks that tend to perform well when the economy is booming. But not so well when businesses are dealing with rising interest rates to offset 40-year high inflation. 

But this isn’t a typical economy. There are a lot of sectors that are essential to building the new economy.  

I’m referring to things like 5G, autonomous vehicles (not to mention electric vehicles themselves) and renewable energy to name a few. The rapid growth in these sectors was snarled by supply chain disruptions. But the demand is still strong.  

And that means that, as is the case with many sectors, there may be some attractive buys in the materials sector. This article looks at three materials stocks that offer some attractive fundamentals that should put them on your watchlist as you consider your next moves in this market. 

A Leader in Two of the Most Sought-After Raw Materials 

The first of the three stocks to consider is Vale (NYSE:VALE). The company is the world’s largest producer of two iron and nickel. These are two indispensable materials in the new economy. In fact, in May 2022, Vale announced a long-term contract with Tesla (NASDAQ:TSLA) to supply nickel for the company’s electric batteries.  

And the company generates approximately 65% of its revenue from iron which is needed to make the steel that is being used for building items that will be critical to the nation’s infrastructure like wind turbines. Plus, the company has a strong relationship with China and is expecting the country to have strong demand in the second half of the year.  


VALE stock is trading at an attractive price-to-earnings ratio of 3.03. The sector average P/E is around 8.5x earnings, Vale is trading at a nice discount. And the company offers a semi-annual dividend with a juicy yield of 6.22%. That’s also above the sector average. 

An Undervalued Steel Company 

Next on the list is Cleveland-Cliffs (NYSE:CLF). And I’ll start with the fundamentals. Like Vale, Cleveland-Cliffs is trading at an attractive P/E ratio of 2.61. When ratios start getting that low, you have to wonder what’s up, particularly with the stock price cut in half from its 52-week high. 

The culprit may be inflation which is hurting the company’s earnings even as it continues to grow the top line on both a sequential and year-over-year basis. Still with a P/E ratio around 2, there’s not much risk to diving into CLF stock. Analysts tracked by MarketBeat give the stock a $27.92 price target which is a 60% upside from the current price.  

Cleveland-Cliffs is “the largest supplier of steel to the automotive industry in North America.” And the company also recently reached a tentative 4-year deal with the United Steelworkers (USW) union that should add more certainty to the company’s earnings. With demand likely to remain strong, there appears to be a strong upside for the Cleveland-based company.  

A Miner with a Stable Growth Story 

The last of the three materials stocks for your watchlist is Freeport-McMoran (NYSE:FCX). The company has a growth stability score of 96 from S&P Capital IQ’s Growth Stability metric. The company has benefited from higher commodity prices.  

But as Kate Stalter noted for MarketBeat readers earlier this month, those prices have been a double-edged sword. Lower copper prices in the last quarter contributed to lower revenue and earnings. However, Freeport-McMoran derives a sizable portion of its business from gold and molybdenum – of which it is the world’s largest producer.  

And this a company that is trading at a P/E ratio of 8.8x which is in-line with the sector average with a strong track record of growth and a solid balance sheet.  

Should you invest $1,000 in Freeport-McMoRan right now?

Before you consider Freeport-McMoRan, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Freeport-McMoRan wasn't on the list.

While Freeport-McMoRan currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Vale (VALE)
1.7418 of 5 stars
$16.72+0.5%4.67%3.89Moderate Buy$17.55
Tesla (TSLA)
2.9489 of 5 stars
$194.86+0.1%N/A60.20Hold$278.43
Cleveland-Cliffs (CLF)
2.2015 of 5 stars
$16.42+3.5%N/A3.56Hold$20.42
Freeport-McMoRan (FCX)
1.7497 of 5 stars
$40.22+1.6%0.75%15.29Hold$38.07
Compare These Stocks  Add These Stocks to My Watchlist 

Chris Markoch

About Chris Markoch

Contributing Author: Retirement, Individual Investing

Chris Markoch is a freelance financial copywriter with over five years of experience covering various aspects of the financial markets. You may find his writing a little different than other stock articles you’ve read. And that’s OK with him. Chris doesn’t have a traditional finance background. What he does bring to the table is a strong business and marketing background having worked for agencies that serviced Fortune 500 companies. With that in mind, he isn’t overly impressed with what companies say, and more focused on what they do. And because buyer behavior dictates so much of what happens with a stock, Chris always keeps the end consumer close in mind. Chris has been writing for MarketBeat since 2018.

Contact Chris Markoch via email at CTMarkoch@msn.com.