Basic Materials: Amid Trade Tensions, We See Several Opportunities

Agriculture, uranium, and lithium stocks look particularly appealing in the basic materials sector.

Sep 30, 2019

Mentioned: Canfor Corp (CFP) , Albemarle Corp (ALB) , Nutrien Ltd (NTR) , Cameco Corp (CCJ)

The Morningstar US Materials Index has underperformed the broader market by about 3% year to date (Exhibit 1), as trade tensions with China continued to escalate. As a result, nearly 30% of our North American materials sector coverage now trades in 4- and 5-star territory (Exhibit 2).

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Kristoffer Inton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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