February 25,2022

Top Materials Stocks for January 2022

by David Stewart

The materials sector includes companies engaged in the discovery, development, and processing of raw materials, which are used across a broad range of sectors and industries. Materials stocks include manufacturers of products as varied as plastic, fertilizer, paper, concrete, and metals. Prominent names include Ecolab Inc. (ECL), Air Products and Chemicals Inc. (APD), and DuPont de Nemours Inc. (DD).

Materials stocks, represented by an exchange-traded fund (ETF)—the Materials Select Sector SPDR ETF (XLB)—have slightly underperformed the broader market. The XLB’s total return was 26.4% over the past 12 months, below the benchmark Russell 1000’s total return of 27.2%. These market performance numbers and all statistics in the tables below are as of Dec. 23, 2021.

Here are the top three materials stocks with the best value, the fastest growth, and the most momentum.

These are the materials stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

  • David Stewart
  • February 25,2022

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