Commodity stocks are stocks of the companies involved in manufacturing, processing, or selling certain commodities like oil, gold, silver, and steel. Thus, commodity stocks give investors exposure to the commodities, without investing in them directly through the future contracts route.
Commodity stocks follow the price movement of the related commodities. For instance, when gold prices go up, the revenues and operating margin increase, and so does the related gold companiesโ stock price. The reverse also stands true, making commodity stocks a double-edged sword, with a high-risk high-reward potential.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
---|---|---|---|---|
BBL | BHP Group | $0.92 | -8.00% | 90.2M |
BHP | BHP Group | $50.35 | -16.14% | 103.5B |
RIO | Rio Tinto Group | $61.95 | -9.04% | 104.5B |
VALE | Vale S.A. | $9.47 | -28.64% | 42.9B |
TECK | Teck Resources Limited | $43.05 | 13.47% | 21.8B |
VEDL | Vedanta Limited | $455.50 | 63.50% | 1692.7B |
BVN | Compania de Minas Buenaventura S.A.A. | $13.05 | -14.59% | 3.1B |
CCJ | Cameco Corporation | $49.93 | 11.65% | 21.7B |
CLF | Cleveland-Cliffs Inc. | $10.04 | -48.03% | 5.0B |
CMP | Compass Minerals International, Inc. | $12.05 | -43.29% | 498.4M |
PVG | Pretium Resources Inc. | #N/A | #N/A | #N/A |
HSC | Harsco Corporation | #N/A | #N/A | #N/A |
ARLP | Alliance Resource Partners, L.P. | $26.62 | 34.11% | 3.4B |
MTRN | Materion Corporation | $99.37 | -18.25% | 2.1B |
NEXA | Nexa Resources S.A. | $5.90 | -15.71% | 781.4M |
ARCH | Arch Coal, Inc. | $1.89 | 30.34% | 122.6M |
ARNC | Arconic Inc. | #N/A | #N/A | #N/A |
ACH | Aluminum Corporation of China Limited | $10.00 | -3.85% | 608.5M |
AA | Alcoa Corporation | $36.12 | 30.35% | 9.3B |
KALU | Kaiser Aluminum Corporation | $70.70 | 9.02% | 1.1B |
SCCO | Southern Copper Corporation | $96.72 | 22.17% | 76.1B |
FCX | Freeport-McMoRan Inc. | $38.22 | 0.26% | 53.5B |
WPM | Wheaton Precious Metals Corp. | $66.19 | 44.20% | 30.3B |
PAAS | Pan American Silver Corp. | $24.55 | 87.12% | 8.9B |
AG | First Majestic Silver Corp. | $5.63 | 21.08% | 3.9B |
CDE | Coeur Mining, Inc. | $6.92 | 158.21% | 2.8B |
HL | Hecla Mining Company | $5.88 | 65.17% | 3.7B |
NUE | Nucor Corporation | $130.26 | -30.08% | 30.6B |
MT | ArcelorMittal | $27.84 | -2.86% | 23.7B |
PKX | POSCO | $40.43 | -52.06% | 13.2B |
RS | Reliance Steel & Aluminum Co. | $283.04 | -4.84% | 15.3B |
STLD | Steel Dynamics, Inc. | $126.71 | 1.50% | 19.3B |
GGB | Gerdau S.A. | $2.85 | -19.72% | 5.8B |
TX | Ternium S.A. | $29.93 | -20.67% | 5.9B |
SID | Companhia Siderurgica Nacional | $1.59 | -55.46% | 2.0B |
CMC | Commercial Metals Company | $49.63 | -7.75% | 5.6B |
X | United States Steel Corporation | $36.98 | -20.23% | 8.3B |
WOR | Worthington Industries, Inc. | $41.39 | -28.87% | 2.1B |
ROCK | Gibraltar Industries, Inc. | $59.24 | -30.55% | 1.8B |
SIM | Grupo Simec, S.A.B. de C.V. | $26.30 | #N/A | 4.5B |
XOM | Exxon Mobil Corporation | $108.89 | 4.73% | 478.6B |
CVX | Chevron Corporation | $152.62 | -0.93% | 274.0B |
NEM | Newmont Goldcorp Corporation | $44.84 | 34.49% | 51.2B |
RGLD | Royal Gold, Inc. | $144.48 | 28.86% | 9.5B |
GORO | Gold Resource Corporation | $0.35 | 40.00% | 33.7M |
VGZ | Vista Gold Corp. | $0.65 | 66.67% | 80.1M |
USAU | U.S. Gold Corp. | $8.87 | 155.62% | 108.7M |
XPL | Solitario Zinc Corp. | $0.73 | 40.38% | 59.4M |
LODE | Comstock Mining Inc. | $0.39 | -17.02% | 89.8M |
Factors to Consider Before Investing in Commodity Stocks
As discussed above, the performance of commodity stocks is directly proportional to the related commodity. However, commodity prices and performance are not the only factors that impact commodity stocks. Investors must conduct an in-depth analysis of the commodity companies to gauge their inherent strengths and weaknesses before investing in them.
Therefore, in addition to tracking the related commodity, investors must also consider capacity utilization, valuation, price-to-earnings ratio, and a debt-equity ratio of commodity companies before investing in commodity stocks. Moreover, macroeconomic factors like corporate governance, tariffs, regulations, and government policies also affect the performance of commodity stocks.
Which Commodity Stocks Should I Buy?
A variety of commodity stocks trade on the stock exchanges. They include stocks of companies engaged in metal mining, metal production, coal companies, and oil and gas companies. We have compiled a list of the best commodity stocks for you to choose from.
Commodity stocks provide diversification to investorsโ portfolios, in addition to high returns and hedge against inflation. Therefore, despite the volatility and risks associated with investing in commodity stocks, they are suitable modes of investment for investors looking at high returns without too much exposure to commodities and markets.