In this article, we will take a look at the 12 Best Mid-Cap Materials Stocks to Buy Now.
In 2025, the U.S. construction and materials sector entered an uncertain era. The industry is currently focused on two areas: changes in domestic immigration policy and new developments in international trade that could affect the cost of building materials. As such, it should come as no surprise to anyone that 2025 is shaping up to be a crucial year for the sector, given that the current cycle’s building activity is slowing down.
However, there are still advancements that encourage market growth and competition. Cognitive Market Research projects that the global materials market, which encompasses metals, polymers, ceramics, and composites, will increase at a compound annual growth rate (CAGR) of 5.2% to reach $1.9 trillion by 2026.
To that end, technological advancements appear as a major driver of the industry . In recent times, engineers and builders employ 4D and 5D simulations to solve workflow problems brought on by worker shortages and scheduling conflicts. The transition of the materials sector to sector 4.0 and the establishment of a “smart factory” also seems to be well advanced.
That being said, let us now take a look at the list of the 12 best mid-cap materials stocks to buy now.
Our Methodology
For this list, we started by screening for companies in the materials sector with a market capitalization between $2 billion and $10 billion. From this filtered group, we ranked the stocks based on the number of hedge funds holding positions, using data from the Insider Monkey database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Knife River Corporation (NYSE:KNF)
Market Capitalization: $5.20 billion
Number of Hedge Fund Holders: 24
Knife River Corporation (NYSE:KNF) ranks among the best mid-cap materials stocks to buy now. Wells Fargo maintained its Overweight rating on Knife River Corporation (NYSE:KNF) and raised its price target from $96 to $97 on August 11. The update came despite Knife River’s lower-than-expected second-quarter performance and lowered outlook for the current period.
According to Wells Fargo, the factors behind Knife River’s performance failure are “transitory,” with the firm citing weather-related problems and Oregon state financing difficulties as particular short-term obstacles.
The firm pointed to Knife River’s increasing backlog as a sign of strength, indicating that it may position the company for “a very strong 2026,” as long as management continues to focus on bolt-on acquisitions and operational enhancements.
Knife River Corporation (NYSE:KNF) offers contractual services and construction supplies based on aggregates. The company provides its services and building supplies across the central, southern, and western United States.
11. Balchem Corporation (NASDAQ:BCPC)
Market Capitalization: $5.36 billion
Number of Hedge Fund Holders: 32
Balchem Corporation (NASDAQ:BCPC) ranks among the best mid-cap materials stocks to buy now. Following the company’s second-quarter financial reports, H.C. Wainwright maintained its Buy rating on Balchem Corporation (NASDAQ:BCPC) and increased its price target from $180 to $189 on August 5.
For the second quarter of 2025, Balchem Corporation (NASDAQ:BCPC) recorded revenue of $255.5 million, which was marginally higher than the $250.5 million reported in the first quarter and up 1% year-over-year. In contrast to H.C. Wainwright’s prediction of $1.09 per diluted share, the company’s GAAP net earnings came in at $1.17 per diluted share.
The Animal Health and Nutrition segment’s sales were about $56 million, somewhat lower than expected, while Specialty Products sales came in at $37.2 million, higher than expected. Meanwhile, the Industrial Products segment generated $1.48 million in revenue, which fell short of expectations.
Balchem Corporation (NASDAQ:BCPC) manufactures, produces, and distributes specialty performance ingredients and materials for a range of markets, including industrial, pharmaceutical, animal health, animal nutrition, medical device sterilization, and nutritional.
10. Commercial Metals Company (NYSE:CMC)
Market Capitalization: $6.59 billion
Number of Hedge Fund Holders: 32
Commercial Metals Company (NYSE:CMC) ranks among the best mid-cap materials stocks to buy now. On August 14, Wells Fargo began coverage of Commercial Metals Company (NYSE:CMC) with a $61 price target and an Overweight rating. The firm stated that it expects EBITDA, which is currently $686.18 million, to increase significantly due to to the recently announced increases in rebar prices.
On the other hand, newcomer Hybar, which is expected to launch with a 700Kt/yr capacity in the second half of 2025, posed a possible concern, according to Wells Fargo. In spite of this, the firm believes that the new supply will soon displace imports rather than cause a market disruption.
About half of the total price increases of $120/t, according to the analysts, will continue to be effective in the market. Wells Fargo’s analysis suggests that the current consensus forecasts fail to account for this pricing benefit.
In addition to manufacturing, recycling, and marketing steel and metal products, Commercial Metals Company (NYSE:CMC) also provides related materials and services.
9. Hecla Mining Company (NYSE:HL)
Market Capitalization: $5.29 billion
Number of Hedge Fund Holders: 34
Hecla Mining Company (NYSE:HL) ranks among the best mid-cap materials stocks to buy now. BMO Capital reaffirmed its Market Perform rating on Hecla Mining Company (NYSE:HL) and increased its price target from $6 to $6.50 on August 7. The price target rise comes after Hecla’s production performance, especially in gold output, surpassed BMO’s projections.
In contrast to BMO’s expectations of 4.0 million ounces of silver and 32,100 ounces of gold, the company reported a consolidated production of 4.5 million ounces of silver and 45,900 ounces of gold. The production outperformance, which resulted in a record free cash flow of $103.8 million, was driven by strong grades at the Greens Creek and Casa Berardi mines.
Hecla Mining Company (NYSE:HL) also announced $0.09 earnings per share, higher than the $0.06 average consensus and BMO’s prediction. As net debt decreased due to free cash flow and at-the-market stock issuance, the company’s leverage decreased to 0.7x.
With sites in the United States, Canada, and other countries, Hecla Mining Company (NYSE:HL) is a major supplier of base and precious metals. It holds the title of the largest producer of silver in North America.
8. The Scotts Miracle-Gro Company (NYSE:SMG)
Market Capitalization: $3.66 billion
Number of Hedge Fund Holders: 36
The Scotts Miracle-Gro Company (NYSE:SMG) ranks among the best mid-cap materials stocks to buy now. Following The Scotts Miracle-Gro Company (NYSE:SMG)’s fiscal third-quarter 2025 earnings announcement, Stifel maintained its Hold rating and reduced its price target to $70 from $71 on August 4. The firm pointed to a “more positive bias” in spite of the target reduction, pointing to the quarter’s better-than-expected gross margin performance and the stock’s recent underperformance, which has caused SMG shares to trade lower than its rivals in the consumer staples industry.
Stifel noted the company’s U.S. Consumer segment outlook had allayed its earlier worries, and point-of-sale patterns indicated strong performance despite what the firm called “a still challenging backdrop.”
Stifel has raised its expectations for fiscal years 2025–2027, mostly because of improved gross margin performance. However, in anticipation of fourth-quarter earnings, the firm characterized U.S. consumer fiscal year 2026 prospects as “the key debate” amid uncertainties.
The Scotts Miracle-Gro Company (NYSE:SMG) produces, markets, and distributes products for indoor and hydroponic gardening, as well as lawn and garden maintenance. The company has developed cutting-edge technology and solutions specifically designed for cannabis cultivation by utilizing its expertise in horticulture and gardening.
7. Eagle Materials Inc. (NYSE:EXP)
Market Capitalization: $7.76 billion
Number of Hedge Fund Holders: 36
Eagle Materials Inc. (NYSE:EXP) ranks among the best mid-cap materials stocks to buy now. On July 30, Stifel maintained a Hold rating on Eagle Materials Inc. (NYSE:EXP) while increasing its price target to $246 from $241 after the building materials company’s quarterly earnings exceeded expectations
Despite challenges from weather and housing during the June quarter, Eagle Materials Inc. (NYSE:EXP) reported first-quarter fiscal 2026 revenue of $635 million, above consensus estimates of $612 million.
The company’s cement division showed resilience, with volume up 2% and pricing being largely unchanged year-over-year. Stifel credited this to accelerating infrastructure wins in addition to Eagle’s solid footprint in housing markets.
Eagle Materials Inc. (NYSE:EXP) also showed notable growth in the wallboard market, with volumes up 4%, outpacing an industry decline of an estimated 6%.
Eagle Materials Inc. (NYSE:EXP) is a basic materials company that produces and markets light and heavy building materials. The company also engages in limestone mining in order to manufacture, produce, market, and sell Portland cement.
6. Cleveland-Cliffs Inc. (NYSE:CLF)
Market Capitalization: $5.16 billion
Number of Hedge Fund Holders: 42
Cleveland-Cliffs Inc. (NYSE:CLF) ranks among the best mid-cap materials stocks to buy now. On August 14, Wells Fargo began coverage of Cleveland-Cliffs Inc. (NYSE:CLF) with a $10 price target and an Equal Weight rating. The investment bank used an 8x 2026E EV/EBITDA multiple to support its target price, citing a “near-term constructive sheet price view and richer mix” as justifications.
According to Wells Fargo, this value reflects the company’s “particular operating leverage to sheet prices” and is higher than the historical target multiple when compared to Cleveland-Cliffs’ trading range of 6-7x over the preceding 1-3 years.
Additionally, the firm acknowledged that Cleveland-Cliffs’ management’s “steady progress on cost-cutting and pruning underperforming assets” at the mining and steel sector.
Cleveland-Cliffs Inc. (NYSE:CLF) is the largest producer of flat-rolled steel in North America. The company’s products include advanced high-strength steel, aluminized, galvalume, enameling, hot-rolled, cold-rolled, electrogalvanized, hot-dip galvanized, and galvannealed steel.
5. Albemarle Corporation (NYSE:ALB)
Market Capitalization: $9.57 billion
Number of Hedge Fund Holders: 42
Albemarle Corporation (NYSE:ALB) ranks among the best mid-cap materials stocks to buy now. Bank of America maintained its Buy rating on Albemarle Corporation (NYSE:ALB) on August 11 with a price target of $84, pointing to possible upside owing to the near-term momentum in lithium price.
The investment bank stated that the price of lithium has “rallied hard off a June bottom” and anticipates further price increases due to recent news regarding CATL. According to BofA’s current model, spot prices for lithium carbonate are expected to hit $9.5/kg in 2026, surpass $15/kg by 2027, and reach $20/kg by 2030.
Although BofA’s price target remains $84, the firm pointed out that Albemarle Corporation (NYSE:ALB) is valued at $109 based on its discounted cash flow analysis (NAV) component, indicating a substantial potential upside from current levels.
Albemarle Corporation (NYSE:ALB) focuses on engineered specialty chemicals. The company’s dominance in the lithium industry provides it a vital position across the EV supply chain, with EV clients accounting for more than 80% of its sales. Albemarle’s range is further broadened by its position as a pioneer in catalyst products and one of the top three bromine producers.
4. Eastman Chemical Company (NYSE:EMN)
Market Capitalization: $7.97 billion
Number of Hedge Fund Holders: 43
Eastman Chemical Company (NYSE:EMN) ranks among the best mid-cap materials stocks to buy now. Although it maintained an Outperform rating on the company’s shares, RBC Capital reduced its price target from $91 to $74 for Eastman Chemical Company (NYSE:EMN) on August 5. The update comes after Eastman Chemical’s second-quarter earnings miss which showed a decreased third-quarter forecast of $1.25 in earnings per share for Q3 compared to $1.60 in Q2, mainly as a result of inventory destocking.
Despite existing difficulties, RBC Capital anticipates a “material step-up” in performance the next year, subject to a number of factors, including easing utilization pressures of roughly $75–100 million in the second half of 2025.
The firm also mentioned the full-year benefit from ramped capacity, possible additional cost savings in 2026, and Eastman’s roughly $75 million cost-reduction plan as encouraging indicators for future performance.
Eastman Chemical Company (NYSE:EMN) is a specialty materials company that operates in the US, China, and internationally.
3. FMC Corporation (NYSE:FMC)
Market Capitalization: $5.08 billion
Number of Hedge Fund Holders: 43
FMC Corporation (NYSE:FMC) ranks among the best mid-cap materials stocks to buy now. On August 13, Barclays reiterated its Overweight rating on FMC Corporation (NYSE:FMC) with a price target of $48, down from $49. The firm’s forecast for FMC’s fiscal year 2025 revenues remains essentially unchanged, estimating flat sales year over year (down 1%), or around $4.2 billion.
Barclays stated that FMC’s second-quarter performance crossed expectations by almost 20%, leading it to modestly increase its adjusted earnings per share projection to $3.45.
The investment bank is keeping an eye on FMC’s new go-to-market strategy, credit, and inventory levels as the company reports its second-half earnings.
Founded in 1883 as an insecticide factory, FMC Corporation (NYSE:FMC) is an American chemical manufacturing company that has since branched out into other industries, including lithium.
2. Coeur Mining, Inc. (NYSE:CDE)
Market Capitalization: $7.76 billion
Number of Hedge Fund Holders: 44
Coeur Mining, Inc. (NYSE:CDE) ranks among the best mid-cap materials stocks to buy now. BMO Capital maintained its rating of Outperform on Coeur Mining, Inc. (NYSE:CDE) and increased its price target from $11 to $12 on August 7. The price target hike comes after Coeur Mining beat both the consensus forecast of $109 million and BMO Capital’s estimate of $115 million in the second quarter, with free cash flow coming in at $146 million.
With gold and silver output exceeding projections, the mining company reported quarterly earnings per share of $0.20, exceeding both the consensus estimate of $0.18 and BMO Capital’s expectation of $0.17.
The quarter also saw a major improvement in Coeur Mining’s balance sheet as the company expanded its treasury by $34 million to $112 million and paid off its $110 million revolving credit facility in full.
Coeur Mining, Inc. (NYSE:CDE) is a diversified precious metals company specializing in the extraction and production of silver and gold. The corporation operates mines in Palmarejo, Rochester, Wharf, and Kensington, as well as projects throughout North America.
1. Celanese Corporation (NYSE:CE)
Market Capitalization: $5.32 billion
Number of Hedge Fund Holders: 50
Celanese Corporation (NYSE:CE) ranks among the best mid-cap materials stocks to buy now. RBC Capital retained its Sector Perform rating on Celanese Corporation (NYSE:CE) while reducing its price target from $63 to $45 on August 14. According to the firm, the chemical company’s earnings estimate was impacted by weak near-term volume and production challenges, hinting at a substantial decline of almost 24% year-over-year in the third quarter of 2025.
RBC found a number of issues influencing Celanese’s performance, such as customer inventory management, low vehicle production (particularly in Europe), and tow destocking, all of which have an impact on earnings and the company’s capacity to reap the benefits of volume-dependent M&M integration.
The firm is cautious about material earnings improvement until demand improves, even though management has set a path to quarterly earnings of about $2 per share through self-help measures, including cost reductions of roughly $120 million in fiscal year 2025 and $50-100 million in fiscal year 2026.
Celanese Corporation (NYSE:CE), formerly known as Hoechst Celanese, is an American technology and specialty materials company that operates as a global chemical leader in the production of differentiated chemistry solutions used in most major industries and consumer applications.
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