This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Buy-Rated Materials Companies

Stocks in this article: IAG VAL UFPT BCPC HWKN GS ADM HON

NEW YORK ( TheStreet) -- Despite the jitters this week in commodities markets, including a report from Goldman Sachs (GS) suggesting that commodities prices will take a breather, many analysts believe that macroeconomic trends will keep the materials sector strong.

"Materials are an early indicator of economic cycles, pointing the way to strength in other sectors, such as manufactured goods," said Kevin Baker, senior analyst from TheStreet Ratings.

With many signs pointing to an improving international economy - despite the endless headlines focusing on regional conflicts and natural disasters - the market has pointed the way forward for the materials sector, which includes the metals and mining, chemicals, construction materials, and paper and forest products industries.

According to the U.S. Department of Commerce's February report on manufacturing and trade inventories and sales, inventories are historically low in relation to sales volume, indicating pent-up demand for materials as businesses restock their shelves.

Year-over-year, there were declines of over 1% in inventories for motor vehicle and parts dealers, as well as for furniture, home furnishings, electrical and appliance stores. Taking away seasonal adjustments, the inventory decline for the furniture, home furnishings, electrical and appliance group was a whopping 5.8%.

Regarding Goldman's report on the overheated commodities trade, Sean Broderick, natural resources analysts for Weiss Research and, told TheStreet that "Goldman always talks the book and they probably had short positions, reaping the benefits as the sheep followed their recommendations to move out of commodities."

Despite the inevitable setbacks, Broderick said "there is big bull market in commodities in-place, that I think could run for another five to ten years."

TheStreet's stock ratings model has assigned buy ratings of A-minus or higher to five names in the Materials sector. The model produces a composite rating that incorporates a stock's performance and volatility, incorporating technical and fundamental analysis.

Here are our five materials sector picks:

1 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs