In this article, we talk about the 10 best high-upside materials stocks to buy.
After underperforming in 2025, the materials sector is expected to rebound in 2026, amid potential tailwinds that could benefit sub-industries such as copper, precious metals, and chemicals, among others, according to Ashley Fernandes, portfolio manager of the Fidelity Advisor Materials Fund.
In his January 7 note on the sector, Fernandes said the materials sector’s growth in 2025 lagged the S&P 500, as uncertainty about shifting U.S. trade policy, Federal Reserve rate-cut decisions, and high consumer inflation weighed on growth in the early part of the year. While uncertainty plagues the U.S. macroeconomic outlook for 2026, positive catalysts, such as stronger consumer spending and corporate earnings, could benefit many materials-sector stocks.
Fernandes highlighted copper and precious metals equities as growth drivers for 2026, as copper demand continues to rise amid constrained supply and industrial demand for metals also picks up. The Fidelity portfolio manager also said that stocks in chemical companies could benefit from the demand generated from the massive artificial intelligence build-out, noting that “valuations for commodity chemicals equities have fallen to a point where there is the potential for recovery as market dynamics change.”
That being said, we’re here with a list of the 10 best high-upside materials stocks to buy.
Photo from Aris Mining Corp.
Our Methodology
We compiled a list of materials-sector companies with market capitalizations of at least $1 billion. Then, to identify the 10 best high-upside materials stocks to buy, we evaluated each stock’s upside and included only those with at least 30% potential upside. Additionally, we also included data on hedge fund holdings in these companies as of Q3 2025 to provide further insight into investor interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All pricing data is as of market close on February 6, 2026.
10. Lithium Americas Corp. (NYSE:LAC)
Potential Upside: 32.40%
Number of Hedge Fund Holders: 16
Lithium Americas Corp. (NYSE:LAC) is one of the 10 best high-upside materials stocks to buy. On February 3, Lithium Americas Corp. (NYSE:LAC) announced that it has finalized a series of agreements with the U.S. Department of Energy and General Motors, under which the DOE becomes an investor in Lithium Americas and its joint venture with General Motors.
Under the agreements, implemented on January 30, Lithium Americas Corp. (NYSE:LAC) issued the DOE a warrant to purchase up to 18,268,687 common shares, representing 5% of the company’s outstanding shares. In addition, the joint venture between Lithium Americas Corp. (NYSE:LAC) and General Motors issued a separate warrant for Non-Voting Units representing a 5% economic interest in the joint venture. Both warrants are exercisable for ten years and subject to anti-dilution adjustments.
A registration rights agreement obliges Lithium Americas Corp. (NYSE:LAC) to register for resale the common shares issuable upon exercise of these warrants, while a put, call and exchange agreement gives the DOE the right to sell or exchange its joint venture warrant interests to or through GM Holdings, and grants GM Holdings a corresponding call right after substantial completion milestones at the Thacker Pass project.
Lithium Americas Corp. (NYSE:LAC) is a lithium mining company that focuses on developing, building, and operating lithium deposits and chemical processing facilities in the United States and Canada.
9. Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA)
Potential Upside: 32.98%
Number of Hedge Fund Holders: 16
Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) is one of the 10 best high-upside materials stocks to buy. On January 20, Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) closed the public placement of $500 million in Class 6 negotiable bonds under its existing non-convertible bond program.
Under the terms of the transaction, Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) placed $60 million in Class 6 bonds at a 6.50% interest rate and 100% of face value. The issuance and settlement of the notes were set for January 23, followed by a 36‑month bullet maturity and semiannual interest payments. Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) said that this private placement provides medium-term financing stability to support its funding needs for operations within the Argentine construction industry. Following the deal, the company’s stock rose from $11.55 in January 20 to $12.36 on January 27, before a continuous 8-day fall to $10.78 on February 5.
Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) is an Argentine cement manufacturing company that procures raw materials from quarries, produces and sells concrete, and offers railroad transportation services and granular aggregates.
8. Fortuna Mining Corp. (NYSE:FSM)
Potential Upside: 34.88%
Number of Hedge Fund Holders: 22
Fortuna Mining Corp. (NYSE:FSM) is one of the 10 best high-upside materials stocks to buy. On February 4, CIBC upgraded Fortuna Mining Corp. (NYSE:FSM) to Neutral from Underperformer and raised its price target to C$16 from C$9. According to the analyst, the company is expected to continue benefiting from the demand drivers it saw from 2025, as it expects gold to reach $6,000/oz in 2026, $6,500/oz in 2027, and $6,000/oz in 2028. Meanwhile, on January 26, Scotiabank analyst Eric Winmill updated his price target on Fortuna Mining Corp. (NYSE:FSM) to $14 from $11 while retaining his Outperform rating on the shares.
The analyst reactions followed a January 21 announcement by Fortuna Mining Corp. (NYSE:FSM) about the significant expansion of mineral reserves at its Séguéla Mine in Côte d’Ivoire to 1.54 million ounces of gold, a 31% increase from late 2025, accounted for by the first-time inclusion of 401,000 ounces slated for underground mining. With this update, Fortuna Mining Corp. (NYSE:FSM) expects to extend the mine’s life to more than nine years at the current processing rate. The company is also advancing technical studies on a processing plant expansion that could lift throughput by about 25% to as much as 2.5 million tonnes per year, potentially boosting annual gold output above 200,000 ounces.
Fortuna Mining Corp. (NYSE:FSM) engages in the exploration, extraction, and processing of precious and base metals in Latin America. It operates the Caylloma silver, lead, and zinc mine and the San Jose silver-gold mine, with an additional mining site under construction.
7. Sigma Lithium Corporation (NASDAQ:SGML)
Potential Upside: 37.07%
Number of Hedge Fund Holders: 15
Sigma Lithium Corporation (NASDAQ:SGML) is one of the 10 best high-upside materials stocks to buy. On February 4, Brazil’s mining regulator issued an official technical statement confirming the safety of the waste piles at the sites where Sigma Lithium Corporation (NASDAQ:SGML) operates. After conducting drone overflights and visual assessments on January 20, the regulator said that it “did not identify geotechnical anomalies indicative of an imminent risk of global instability in the inspected structures.”
Meanwhile, on February 3, BofA Securities upgraded Sigma Lithium Corp. (NASDAQ:SGML) from Underperform to Neutral and set a price target of $14, after the company announced the resumption of its mining activities. According to the analyst, liquidity risk remains for Sigma Lithium Corp. (NASDAQ:SGML) as it continues through an estimated three-month ramp period before reaching sellable nameplate production, during which cash generation would rely on “lower margin tailings sales and potential capital injections.”
Sigma Lithium Corporation (NASDAQ:SGML) engages in the exploration and development of lithium deposits in Brazil, through which it serves the lithium-ion battery supply chain for the electric vehicle industry.
6. FMC Corp. (NYSE:FMC)
Potential Upside: 41.26%
Number of Hedge Fund Holders: 35
FMC Corp. (NYSE:FMC) is one of the 10 best high-upside materials stocks to buy. On February 8, FMC Corp. (NYSE:FMC) reported fourth quarter 2025 sales of $1.08 billion, down 11% year over year, and $280 million in adjusted EBITDA, down 17%, while its adjusted EPS slid 33% to $1.20.
For 2026, FMC Corp. (NYSE:FMC) projects full‑year sales of $3.6 billion to $3.8 billion and adjusted EBITDA of $670 million to $730 million, with first‑quarter sales down around 5% and EBITDA down nearly 60% year over year, partly due to one‑off costs and tariff headwinds. The company expects about $20 million of tariff‑related headwinds in 2026, with almost all of it hitting in the first quarter. Meanwhile, the company’s management is targeting more than $1 billion in debt reduction through asset sales and licenses, aiming to end 2026 with net debt around $3.5 billion and about a half‑turn lower leverage.
Meanwhile, on February 5, Moody’s downgraded FMC Corp. (NYSE:FMC) senior unsecured ratings to Ba1 from Baa3, pushing the agricultural chemicals company into junk status. The ratings agency also assigned a negative outlook to the company, citing challenges stemming from patent expirations of its insect-control product Rynaxypyr in multiple countries.
FMC Corp. (NYSE:FMC) is an agricultural sciences company that engages in creating products for crop protection, plant health, agriculture, pest control, and turf management. The company offers insect control products, herbicides, insecticides, flutriafol-based fungicides, and bionematicides.
5. Vizsla Silver Corp. (NYSE:VZLA)
Potential Upside: 52.17%
Number of Hedge Fund Holders: 15
Vizsla Silver Corp. (NYSE:VZLA) is one of the 10 best high-upside materials stocks to buy. On February 4, CIBC analysts lowered their price target on Vizsla Silver Corp. (NYSE:VZLA) to C$10 from C$10.50 and retained its Outperformer rating.
This rating action followed the January 20 announcement of updates on Vizsla Silver Corp. (NYSE:VZLA) activities in 2025 and plans for 2026. The company completed a feasibility study in November 2025 projecting 17.4 million ounces of annual silver-equivalent production over a 9.4-year mine life, with an after-tax net present value of $1.8 billion and 111% internal rate of return at $35.50 per ounce of silver and $3,100 per ounce of gold. In addition, Vizsla Silver Corp. (NYSE:VZLA) secured $300 million in project financing through a five-year convertible notes issuance with a 5% coupon and conversion price of $10.54 per share.
For 2026, Vizsla Silver Corp. (NYSE:VZLA) plans to advance detailed engineering, continue the test mine program, conduct 60,000 meters of diamond drilling across the district, and complete airborne surveys. The company expects to receive its environmental permit mid-year and targets first silver production in the second half of 2027.
Vizsla Silver Corp. (NYSE:VZLA) is a mineral exploration and development company that engages in the acquisition, exploration, and development of mineral resource properties, including a silver-gold project in Sinaloa, Mexico.
4. TMC The Metals Co Inc. (NASDAQ:TMC)
Potential Upside: 53.04%
Number of Hedge Fund Holders: 19
TMC The Metals Co Inc. (NASDAQ:TMC) is one of the 10 best high-upside materials stocks to buy. On January 23, TMC The Metals Co Inc. (NASDAQ:TMC) filed an expanded application that more than doubled its targeted deep-sea mining area, after the U.S. National Oceanic and Atmospheric Administration finalized a rule that eased applications. In particular, the regulator said that it would consolidate the licensing and permitting process into a single and ostensibly shorter review. In a statement about the regulator’s update, TMC The Metals Co Inc. (NASDAQ:TMC) CEO Gerard Barron said:
“Those amended regulations pave a pathway for faster permitting and us moving into commercial production sooner rather than later,”
Meanwhile, on January 22, H.C. Wainwright raised its price target on TMC The Metals Co Inc. (NASDAQ:TMC) to $11.75 from $7.50 and maintained a Buy rating, citing the recently expanded application and the easing of regulations regarding the process. The analyst said that the application is a “critical step toward further de-risking” of the company’s future operations.
TMC The Metals Co Inc. (NASDAQ:TMC) is a deep-sea minerals exploration company focused on the collection and processing of polymetallic nodules found on the seafloor in international waters of the Pacific Ocean.
3. USA Rare Earth Inc. (NASDAQ:USAR)
Potential Upside: 57.19%
Number of Hedge Fund Holders: 30
USA Rare Earth Inc. (NASDAQ:USAR) is one of the 10 best high-upside materials stocks to buy. On January 26, the U.S. Commerce Department issued a letter of intent on Jan. 26 to provide USA Rare Earth Inc. (NASDAQ:USAR) with a $1.3 billion loan and $277 million in federal funding, in exchange for issuing 16.1 million shares of common stock and 17.6 million in warrants to the U.S. government, which will have an 8% to 16% stake in the company depending on how it executes its warrants.
Meanwhile, on January 29, USA Rare Earth Inc. (NASDAQ:USAR) completed a private investment in public equity (PIPE) financing, raising about $1.5 billion in gross proceeds. As part of the financing, the company issued about 69.8 million shares of common stock at $21.50 per share. The company plans to use the net proceeds to accelerate the development of its mine-to-magnet value chain.
Shortly after these deals, on January 30, Cantor Fitzgerald raised its price target on USA Rare Earth Inc. (NASDAQ:USAR) to $35 from $28 while maintaining an Overweight rating on the stock. The analyst noted that the company’s recent deals gave it access to about $3.5 billion in capital, allowing it to shift its focus to execution around magnet production, which could potentially generate $1.2 billion in EBITDA by 2030 if successfully done.
USA Rare Earth Inc. (NASDAQ:USAR) is a domestic supplier of rare earth magnets and heavy rare earth elements and is currently developing a vertically integrated domestic supply chain for rare earth element magnet production.
2. Orla Mining Ltd. (NYSE:ORLA)
Potential Upside: 73.08%
Number of Hedge Fund Holders: 33
Orla Mining Ltd. (NYSE:ORLA) is one of the 10 best high-upside materials stocks to buy. On January 15, Orla Mining Ltd. (NYSE:ORLA) announced that it approved the start of construction-related spending for its South Railroad gold project in Nevada after completing a feasibility study. South Railroad is expected to become Orla’s third operating mine, lifting total company production to nearly 500,000 ounces annually. The study confirmed that, with an initial estimated capital cost of $395 million, the site can achieve annual gold production of 130,000 ounces over the first five years of operations. Full construction is targeted to begin in mid-2026, pending final permits.
Following the announcement, three analyst firms issued updated opinions on Orla Mining Ltd. (NYSE:ORLA). On February 3, RBC Capital analyst Josh Wolfson maintained a Buy rating on the company and set a price target of C$32. On January 27, Scotiabank maintained an Outperform rating on the stock, while raising the price target to C$26.50 from C$21. On January 16, Stifel Nicolaus analyst Ingrid Rico maintained a Buy rating on the stock and set a price target of C$28.00.
Orla Mining Ltd. (NYSE:ORLA) is a capital pool company that engages in the business of acquisition, exploration, development, and operation of mineral properties containing gold, silver, zinc, lead, and copper deposits.
1. Ramaco Resources Inc. (NASDAQ:METC)
Potential Upside: 110.15%
Number of Hedge Fund Holders: 31
Ramaco Resources Inc. (NASDAQ:METC) is one of the 10 best high-upside materials stocks to buy. On January 20, Jefferies upgraded Ramaco Resources Inc. (NASDAQ:METC) to Buy from Hold while adjusting its price target to $30.00 from $33.00. The research firm cited potential upside risk to its coal price assumptions as a key factor in the upgrade decision. Jefferies currently forecasts coal prices at $198 per ton for this year, which stands below the current futures price of $245 per ton.
In addition, the ongoing and escalating geopolitical risks related to critical minerals were also highlighted as positive factors for the company, contributing to the rating improvement at the current share price. The price target reduction was attributed to risks relating to the company’s Brook project.
Meanwhile, on January 26, Robert W. Baird analyst Ben Kallo maintained a Buy rating on Ramaco Resources Inc. (NASDAQ:METC) and set a $40 price target.
Separately, on December 30, Ramaco Resources Inc. (NASDAQ:METC) said that its principal lender, KeyBank, increased the total commitments under its amended revolving credit agreement with the company to $500 million and extended the maturity date to 2030. The expanded facility includes a $350 million revolving commitment and a $150 million accordion feature, up from the previous $200 million commitment with a $75 million accordion feature.
Ramaco Resources Inc. (NASDAQ:METC) develops, operates, and sells metallurgical coal to blast furnace steel mills and coke plants in North America and to international customers.
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