5 Best Basic Materials Stocks to Buy According to Hedge Funds

2. Linde (NASDAQ:LIN)

Number of Hedge Fund Holders: 89

Linde (NASDAQ:LIN) is one of the best basic materials stocks to buy according to hedge funds. On May 1, Linde reported solid Q1 2026 results, with sales rising 8% to $8.8 billion and adjusted EPS increasing 10% to $4.33. This was driven by a 3% increase in underlying sales, supported by price attainment and project start-ups, particularly in the Americas and APAC regions. The company maintained a strong adjusted operating profit margin of 30.0% and generated $2.2 billion in operating cash flow, returning over $1.5 billion to shareholders through dividends and stock repurchases.

Segment performance remained resilient despite challenging global conditions, with the Americas seeing a 10% sales increase led by the electronics and manufacturing sectors. While the APAC region experienced 11% sales growth fueled by chemical and energy project start-ups, the EMEA region saw a slight 2% dip in underlying sales due to lower volumes. Linde Engineering contributed $517 million in sales and maintained a third-party equipment backlog of $2.8 billion.

Looking forward, Linde (NASDAQ:LIN) raised its full-year 2026 adjusted EPS guidance to a range of $17.60 to $17.90, representing 7% to 9% growth. The company expects capital expenditures between $5.0 billion and $5.5 billion to support its $7.1 billion contractual project backlog.

Linde (NASDAQ:LIN) is a global industrial gas and engineering firm. It designs and manufactures industrial gas production equipment. The company also provides gas production and processing services for olefin plants, natural gas plants, air separation plants, hydrogen and synthesis gas plants, and other plants.