In this article, we will list the 5 Best Basic Materials Stocks to Buy According to Hedge Funds. Please visit 8 Best Basic Materials Stocks to Buy According to Hedge Funds to see the extended list and the methodology behind it.
5. Ecolab Inc. (NYSE:ECL)
Number of Hedge Fund Holders: 62
Ecolab Inc. (NYSE:ECL) is one of the best basic materials stocks to buy according to hedge funds. On April 29, Ecolab Life Sciences opened a new Bioprocessing Applications Lab in Dongtan, Korea, marking its first such facility in Asia. This center is designed to support biopharmaceutical manufacturers in one of the world’s most advanced markets by providing local access to technical expertise and process development. The expansion strengthens Ecolab’s global network, building on existing capabilities in the US and the UK to better serve the growing demand for biosimilars and advanced therapies.
The new facility facilitates hands-on collaboration to help customers optimize purification processes and accelerate the transition from early-stage testing to commercial-scale manufacturing. By establishing a local presence, Ecolab enables regional manufacturers to avoid the complexities of overseas material transfers, improving speed to market and operational efficiency. The lab will focus on enhancing cost-effectiveness while ensuring alignment with rigorous global regulatory and performance standards.
This investment reflects a long-term commitment to the life sciences industry and follows recent innovations in the company’s bioprocessing portfolio, such as affinity resin technologies. Management highlighted that the center allows Ecolab Inc. (NYSE:ECL) to work side-by-side with Asian customers to address increasing pressure to scale production quickly.
Ecolab Inc. (NYSE:ECL) provides water, hygiene, and infection prevention solutions and services that protect people and critical resources. Its Global Industrial segment offers water treatment and process applications, along with cleaning and sanitizing solutions, primarily for large industrial customers.
4. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 83
The Sherwin-Williams Company (NYSE:SHW) is one of the best basic materials stocks to buy according to hedge funds. On April 28, Sherwin-Williams reported a 6.8% increase in consolidated net sales to $5.67 billion for Q1 2026, driven by growth across all reportable segments and the recent acquisition of Suvinil. Diluted net income per share rose 7.5% to $2.15, while adjusted EPS reached $2.35. Despite global economic uncertainty and soft demand in certain end markets, the company achieved gross margin expansion and record EBITDA of $998.2 million, supported by moderating raw material costs and effective share-of-wallet strategies.
Performance across segments was led by the Consumer Brands Group, which saw a 19.2% sales surge primarily due to the Suvinil acquisition and strong performance in Europe. The Paint Stores Group grew 3.7%, supported by professional markets like protective and marine coatings, which offset a slight decline in new residential sales. Meanwhile, the Performance Coatings Group increased sales by 6.5%, with double-digit growth in Automotive Refinish. The company also remained active in shareholder returns, distributing $772.7 million through dividends and the repurchase of 1.6 million shares.
Looking ahead, the Sherwin-Williams Company (NYSE:SHW) reaffirmed its full-year 2026 adjusted diluted net income guidance of $11.50 to $11.90 per share. Management anticipates continued market volatility and potential inflationary pressures in logistics and raw materials, prompting targeted price increases and aggressive cost-reduction actions.
The Sherwin-Williams Company (NYSE:SHW) is a global leader in the manufacture, development, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers.
3. CRH plc (NYSE:CRH)
Number of Hedge Fund Holders: 88
CRH plc (NYSE:CRH) is one of the best basic materials stocks to buy according to hedge funds. On April 30, CRH reported a strong start to 2026, with Q1 revenues rising 9% to $7.4 billion. This was fueled by positive underlying demand, disciplined pricing, and contributions from recent acquisitions, particularly within the Americas Materials Solutions segment, which saw a 21% revenue increase. While the company recorded a net loss of $0.2 billion due to higher depreciation and impairment charges, Adjusted EBITDA grew by 18% to $0.6 billion.
The company is actively reshaping its portfolio by reallocating capital toward higher-growth water infrastructure and utility markets. CRH agreed to $1.9 billion in divestitures across non-core businesses, including its construction accessories and lawn and garden operations. Simultaneously, it is investing $0.9 billion in nine acquisitions, highlighted by the $0.7 billion agreement to acquire Axius Water to strengthen its position in the specialized water quality solutions sector in North America.
CRH plc (NYSE:CRH) reaffirmed its full-year 2026 guidance, projecting net income between $3.9 billion and $4.1 billion and Adjusted EBITDA in the range of $8.1 billion to $8.5 billion. The company continues to return value to shareholders, declaring a 5% increase in its quarterly dividend to $0.39 per share and initiating a new $0.3 billion share buyback tranche.
CRH plc (NYSE:CRH) manufactures and distributes a wide range of superior building materials and products used in infrastructure, commercial, residential, and public construction projects worldwide.
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.
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 91
Freeport-McMoRan Inc. (NYSE:FCX) is one of the best basic materials stocks to buy according to hedge funds. On April 23, Freeport-McMoRan reported Q1 2026 net income of $881 million, with adjusted earnings of $0.57 per share. Operating results exceeded earlier estimates, supported by consolidated production of 662 million pounds of copper, 97 thousand ounces of gold, and 22 million pounds of molybdenum. The company maintained a strong liquidity position with $3.7 billion in cash, ending the quarter with a net debt of $2.4 billion, excluding downstream processing facilities in Indonesia.
Operational highlights included the March phased ramp-up of the Grasberg Block Cave underground mine and a new MOU with the Indonesian government to extend operating rights beyond 2041. While the ramp-up schedule was adjusted to modify ore loading systems, the company continues to progress major organic growth projects. These include a potential expansion at El Abra in Chile, for which an environmental impact statement was recently submitted, and ongoing leaching technology innovations in the US.
For the full year 2026, Freeport-McMoRan Inc. (NYSE:FCX) expects consolidated sales of ~3.1 billion pounds of copper and 650 thousand ounces of gold. Operating cash flows for the year are projected to reach $8.7 billion, assuming copper prices remain near $6.00 per pound. The company remains focused on capital discipline, with $4.3 billion earmarked for 2026 capital expenditures to support its pipeline of near and long-term growth options.
Freeport-McMoRan Inc. (NYSE:FCX) is a leading global mining company that operates the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold mines. As a major byproduct of its copper operations, the company is a top-tier gold producer.
While we acknowledge the potential of FCX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FCX and that has 100x upside potential, check out our report about the cheapest AI stock.
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