3 Materials Stocks to Buy Now By StockNews

0
17

© Reuters. 3 Materials Stocks to Buy Now

Materials stocks were mostly ignored by investors last year as the industry was brought low by near-halt in economic activities. But the demand for materials has been climbing rapidly this year with the reopening of industrial and construction activities. So, it could be wise to bet now on Alcoa (NYSE:), Quanex (NYSE:), and Olympic (ZEUS). We think these names are well positioned to capitalize on the industry’s recovery. Read on.The materials industry was mostly ignored by investors last year as companies in this space were severely affected by a drastic decline in economic activities due to COVID-19 related restrictions. However, with the economy’s recovery so far this year, the demand for materials such as iron and steel is rising with the reopening of the industrial and construction sectors. An expected inflationary environment in the near term is also playing a role in boosting demand for materials.

Investors’ interest in the materials sectors is evident in the Materials Select Sector SPDR Fund’s (XLB) 19.2% year-to-date returns compared to the SPDR S&P 500 Trust ETF’s (SPY) 12.8% gains. And continued progress on the vaccination front should drive the demand for materials further with industries returning to full-capacity production. According to the data published by the CDC, 51.8% of the total United States’ population had received at least one dose of COVID-19 vaccine as of June 9.

Given this backdrop, we think it could be wise to bet on shares of fundamentally sound material companies Alcoa Corporation (AA), Quanex Building Products Corporation (NX), and Olympic Steel, Inc. (ZEUS).

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.