SPECIAL REPORT The Top 7 Stocks for 2024

The 3 Best Materials Stocks to Buy Now: September 2023

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  • These are three great materials stocks to keep an eye on.
  • ATI (ATI): they produce various metals and alloys for the defense industry.
  • Cemex (CX): it is a global leader in cement and concrete production.
  • Agnico Eagle Mines (AEM): A gold mining company with operations around the world.
best materials stocks - The 3 Best Materials Stocks to Buy Now: September 2023

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When you hear “materials stocks”, do you yawn? Be honest.

Although they’re not considered snazzy stocks, they can make you a lot of money if you invest right.

Essential everyday materials that make up our roads, bridges, and buildings consist of concrete, metals, chemicals, and other construction products. Necessary for a growing society, materials stocks comprise a vital industry. They are also must-haves for any investor looking for a stable sector in which to invest.

Read further to learn about three materials stocks that have a bright future.

ATI (ATI)

Construction workers pour concrete while on a work site.
Source: Shutterstock

Dallas-based ATI (NYSE:ATI) supplies the aerospace and defense industries as well as the medical, energy, and technology fields with high-performance materials. Among those are metal-based alloys, various machined components, stainless steel sheet products, zirconium metallurgy, and other specialty materials.

The company announced, effective July 1, Kimberly Fields will be their new President and Chief Operating Officer. In June, ATI also announced over $1 billion in a sales commitment by the aerospace and defense industry. These deals primarily include the manufacturer of titanium and nickel products.

ATI is expanding its site in Richland, Washington, which is engaged in titanium melting. This growth will allow the company’s production of high-grade titanium to increase in excess of 30% of previous levels. The addition is projected to be fully operational in early 2025.

ATI has seen a significant increase in its share price over the last year of 52%. This is due to the positive news regarding the company’s growth and continued profitability. They released their most recent Q2 earnings report on August 2. Net income saw an increase of 10%, and total revenue rose by 1% compared to last year.

Cemex (CX)

A person wearing work clothes scoops cement out of a bucket.
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Cemex (NYSE:CX) is a Mexico-based company that produces and sells cement, asphalt, parking curbs, drainage basins, concrete blocks, and other concrete aggregate products for global contraction projects.

One of the world’s top cement manufacturers, this accounts for over 40% of their sales. They also provide sustainable construction material waste disposal and Vertua, concrete produced with lower carbon emissions.

Over the past year, the company’s share price has doubled. This is due to their positive financial standings and emphasis on stainable materials. They reported their most recent earnings in July, with revenue growing by 13%. Total sales in Mexico rose by 30%, and in the U.S. and Europe, sales increased by 10% in Q2 compared to last year.

Cemex recently announced that they acquired two new quarries near Madrid, Spain, to help position themselves better in the area due to increased urban expansion. With this wise yet savvy business move, CX certainly is preparing for future business growth.

Agnico Eagle Mines (AEM)

A close-up shot of a cobalt pile in front of a black background.
Source: Shutterstock

Toronto-based Agnico Eagle Mines (NYSE:AEM) is a mining company that operates in Canada, Finland, Australia, Mexico, and the U.S. Focusing on exploration and production of various precious metals such as gold and silver, they operate both underground and in open pit mines.

Over the last year, their stock price has risen by 15%. The company reported Q2 earnings on July 26, which stated revenue growth of approximately 9%. They saw a net income increase of 13% compared to the year before. AEM cited improved gold production due to their Canadian Malartic Mine recently receiving 100% interest in the location. Also, Agnico announced a Q2 dividend of $0.40 per share.

Gold prices have continued to rise over this last year due to the uncertain economic environment, making companies like Agnico Eagle Mines an excellent option for investors looking to diversify their portfolio.

As of this writing, Noah Bolton held a long position in CX. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines


Article printed from InvestorPlace Media, https://investorplace.com/2023/09/the-3-best-materials-stocks-to-buy-now-september-2023/.

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