Top material stocks to explore in Q2: FCX, NEM, CTVA, DOW & NUE

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 Top material stocks to explore in Q2: FCX, NEM, CTVA, DOW & NUE
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Highlights:

  • Freeport-McMoRan, Inc. (NYSE: FCX) reported earnings of US$1.04 per diluted share in Q1, FY22.
  • Newmont Corporation (NYSE: NEM) returned over 35% gains YTD.
  • Dow Inc. (NYSE: DOW) net sales increased by 28% YoY in Q1, FY22.

The material sector mainly focuses on discovering, developing, and processing raw materials, which are then used across various sectors. Materials, such as metal, concrete, chemicals, etc., are the core foundation of the global economy as almost every industry depends on them.

The demands of the basic materials are generally cyclical, meaning the sector's performance mainly depends on economic growth. Although the pandemic has badly affected the material sector, the industry is recovering.

With the elevated inflation and other economic concerns, some investors are exploring opportunities in the sector. Here we explore some of the top material stocks to watch in the second quarter.

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Freeport-McMoRan, Inc. (NYSE: FCX)

Freeport-McMoRan is a mining company based in Phoenix, Arizona.

The shares of the company traded at US$45.838 at 12:12 pm ET on April 21, down 8.14% from their closing price of April 20. Its stock value increased by 20.3% YTD.

The firm has a market cap of US$67.73 billion, a P/E ratio of 16.11, and a forward one-year P/E ratio of 12.73. Its EPS is US$2.89.

The 52-week highest and lowest stock prices were US$51.99 and US$30.02, respectively. Its trading volume was 13,101,820 on April 20.

The company reported a revenue of US$6.60 billion in Q1, FY22, as compared to US$4.85 billion in the year-ago quarter. Its net income attributable to common shareholders came in at US$1.52 billion, or US$1.04 per diluted share, as compared to US$718 million, or US$0.48 per diluted share in Q1, FY22.

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Top material stocks to explore in Q2Source: ©2022 Kalkine Media®

Newmont Corporation (NYSE: NEM)

Newmont is one of the leading gold mining companies based in Denver, Colorado.

The stock of the company traded at US$77.20 at 12:18 pm ET on April 21, down by 6.53% from its previous closing price. The NEM stock rose 35.44% YTD.

The market cap of the company is US$61.69 billion, the P/E ratio is 53.68, and the forward one-year P/E ratio is 24.29. Its EPS is US$1.45.

The stock saw the highest price of US$86.37 and the lowest price of US$52.60 in the last 52 weeks. Its share volume on April 20 was 5,513,830.

The company reported a net sales of US$3.02 billion in Q1, FY22, as compared to US$2.87 billion in the year-ago quarter. Its net income came in at US$469 million, or US$0.56 per diluted share, as compared to US$579 million, or US$0.70 per diluted share in Q1, FY21.

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Corteva, Inc. (NYSE: CTVA)

Corteva is an agricultural chemical and seed company. It is based in Indianapolis, Indiana.

The shares of the company traded at US$60.95 at 12:26 pm ET on April 21, down 0.60% from their closing price of April 20. Its stock value soared 30.75% YTD.

The firm has a market cap of US$44.31 billion, a P/E ratio of 25.73, and a forward one-year P/E ratio of 24.73. Its EPS is US$2.37.

The 52-week highest and lowest stock prices were US$61.88 and US$40.60, respectively. Its trading volume was 4,258,560 on April 20.

The company will report its first-quarter fiscal 2022 earnings results on May 4, after the market close.

Meanwhile, in Q4, FY21, its GAAP net sales increased by 8% YoY to US$3.48 billion, while its net income from continuing operations came in at US$155 million, or US$0.21 per share. For fiscal 2021, the company's net sales surged 10% YoY to US$15.65 billion.

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Dow Inc. (NYSE: DOW)

Dow is a chemical company that manages its operations through various segments, including packaging and specialty plastics, industrial intermediates, performance materials, and coatings. It is based in Midland, Michigan.

The stock of the company traded at US$70.12 at 12:32 pm ET on April 21, up 3.82% from its previous closing price. The DOW stock soared 18.76% YTD.

The market cap of the company is US$51.75 billion, the P/E ratio is 8.4, and the forward one-year P/E ratio is 9.24. Its EPS is US$8.38.

The stock saw the highest price of US$71.38 and the lowest price of US$52.07 in the last 52 weeks. Its share volume on April 20 was 5,021,474.

The company reported a net sales of US$15.3 billion in Q1, FY22, representing an increase of 28% YoY. Its net income came in at US$1.55 billion, or US$2.11 per diluted share, as compared to US$1.00 billion, or US$1.32 per diluted share in the year-ago quarter.

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Top material stocks: FCX, NEM, CTVA, DOW, NUE

Nucor Corporation (NYSE: NUE)

Nucor Corporation is a Charlotte, North Carolina-based company that engages in producing steel and other related products.

The shares of the company traded at US$179.66 at 12:39 pm ET on April 21, up 6.15% from their closing price of April 20. Its stock value increased by 49.73% YTD.

The firm has a market cap of US$48.18 billion, a P/E ratio of 7.66, and a forward one-year P/E ratio of 8.39. Its EPS is US$23.39.

The 52-week highest and lowest stock prices were US$173.00 and US$75.60, respectively. Its trading volume was 3,599,743 on April 20.

The company reported a net sales of US$10.49 billion in Q1, FY22, as compared to US$7.01 billion in the same quarter of the previous year. Its net earnings came in at US$2.22 billion, as compared to US$987.51 million in Q1, FY21.

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Bottom line:

With the earnings season on track, investors are keeping a close watch on the companies for cues about their performance in the last quarter. However, the majority of the companies have posted positive earnings so far, which raised the investors' confidence.

Meanwhile, as the global economy is also recovering from the pandemic, the pundits anticipate growth in the material sector. The S&P 500 material sector gained 11.13% over the past 12 months while declining 0.15% YTD. On the other hand, the overall S&P 500 index fell 6.44% YTD. However, investors should closely evaluate the companies before spending on stocks, as various uncertainties continue to exist.

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