15 Best Commodity Stocks to Buy Now

What are Commodity Stocks?

Commodities are goods that are used every day such as food, energy, or metals. Commodities are raw materials used to create the products consumers buy, from food to furniture to gasoline or petrol. Commodities are 

Commodities have also evolved as an asset class. Today investors have the option of picking from a variety of financial instruments for the best commodities, which include mutual funds, ETFs, and notes. These instruments cover the whole commodity market according to the sector.

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Merits and Demerits of Investing in Commodities

Benefits of Investing in Commodity stocks:

Inflation Protection: Commodities stocks are one of the few asset classes that benefit from rising inflation. As demand for goods and services increases, the price of those goods and services usually rises as well. As a result, the price of the commodities that are used in producing these goods and services also rises.

Potential Returns: A rise in commodity prices has had a positive impact on the stocks of companies in related industries. Because the price of commodities is highly affected by factors such as supply and demand, exchange rates, inflation, and the overall health of the economy.

Diversification: History has proven that the return on commodity stocks is usually different from the return on other stocks and bonds. Hence, commodity stocks are a great source of diversifying the portfolio.

Disadvantages of Investing in Commodity stocks:

Volatility: The prices of commodities are very volatile as they are highly affected by factors like supply and demand, exchange rates, inflation, and the overall health of the economy

Risk:  Because of volatility, commodity stocks are a risky investment. Therefore, the risk of losing your investment as an investor is always there. Trading volatile stocks are usually done in short bursts which fall under the category of Day Trading.

List of Best Commodity Stocks to Buy Now

Exxon Mobil Corp.

Exxon Mobil is one of the world’s most powerful integrated oil companies.  It is an integrated oil and gas company that discovers, explores, develops, and produces crude oil, natural gas, and natural gas liquids. It carries out the refining of crude oil; produces, transports, trades, and sells petroleum products; and manufactures lube base stocks and finished lubricants. It operates through a network of manufacturing plants, transportation systems, and distribution centers. By using the stock signals, you can avoid hours of technical analysis to understand the market.

ExxonMobil announced results for the first quarter of 2022:

• Earnings of $ 5.5 billion, compared with $8.9 billion in the fourth quarter of 2021.
• Earnings per share of $ 1.28 
• Cash flow from operating activities was reported at $14.8 billion

Exxon Mobil announced plans for its first world-scale blue hydrogen plant. This proposed plant would produce up to 1 billion cubic feet per day of blue hydrogen and include one of the world’s largest carbon capture and storage projects. This will result in doubling the company’s industry-leading carbon capture capacity. Also, the company announced plans to achieve net-zero greenhouse gas emissions from operating assets by 2050.

Exxon Mobil has a market capitalization of around $ 363 billion. The share of the company is currently trading at a price of $86.12. The stock has been on a bullish trend for the past two years. In 2021, the stock went from $ 41.22 to $ 61.19, representing a 48 % increase in one year. By 2022, the stock has appreciated by 41 % to date.

Studying the price forecasts of Exxon Mobil, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 128
• Median Target of $ 102
• Low Estimate of $ 77

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Rio Tinto PLC

Rio Tinto plc is a UK-based mining and metals company. The Company is principally engaged in the production of materials essential to human progress. The Company’s segments include Iron Ore, Aluminum, Copper, and Minerals. The Company operates an integrated portfolio of Iron Ore assets, which includes a network of 17 mines, four independent port terminals, and a rail network spanning approximately 2,000 kilometers. As an investor, you need to stay put and wait a while before you can benefit from your investment. Investing in value stocks is a long-term investment.

For the FY 2021, the company reported:

• Consolidated Sales Revenue of $ 64 billion, a 42 % increase from the previous year 
• Free cash flow of $17.7 billion, an 88 % increase from the previous year
• Net Earnings of $ 21 billion, more than doubled from the previous year
• Earning per share of $ 1.32, a 72 % increase from the previous year

The company is targeting net-zero emissions. In line with this strategy, Rio Tinto has stepped up towards multiple contracts during the year, which are

• Commencement of underground mining at Oyu Tolgoi following a comprehensive agreement reached with the Government of Mongolia, 
• Completion of the acquisition of the Rincon lithium project in Argentina
• Signed a framework agreement at the Simandou iron ore project in Guinea

Rio Tinto has a market capitalization of around $ 107.4 billion. The share of the company is currently trading at a price of $ 64.54. The stock has been volatile in the past two years. In 2021, the stock went from $ 75.22 to $ 93.17 and then dropped to $ 66.94. Overall, the stock declined by 11 % during the year. By 2022, the stock has appreciated by 41 % to date.

Studying the price forecasts of Rio Tinto, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 94
• Median Target of $ 93
• Low Estimate of $ 74

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Caterpillar

Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. There are many stock advisory services that recommend a few of the best stocks to their members and subscribers.

Caterpillar operates on every continent. Its business is segmented into three primary segments 

• Construction Industries
• Resource Industries
• Energy & Transportation – 

In addition to it, CAT also provides financing and related services through its Financial Products segment

Caterpillar Inc. announced its first-quarter 2022 earnings result:

• Sales and revenues of $13.6 billion, a 14 % increase compared with $11.9 billion in the first quarter of 2021.
• Earnings per share were $ 2.86, compared with first-quarter 2021 earnings per share of $ 2.77
• Operating cash flow was $0.3 billion

Caterpillar has a market capitalization of around $ 102.7 billion. The share of the company is currently trading at a price of $ 192.64. The stock has been bullish for the majority of 2020 and 2021. After peaking at $ 244, the stock dropped in value. In 2021, the stock went from $ 182 to $ 206 representing a 13 % increase during the year. In 2022, the stock has dropped by 6 % to date.

Studying the price forecasts of CAT, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 350
• Median Target of $ 240
• Low Estimate of $ 164

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Freeport-McMoRan

Freeport-McMoRan is a leading international mining company with headquarters in Phoenix, Arizona.

The company’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America. Also, check out the best swing trading stocks.

For the first quarter of 2022, FCX reported:

• Revenues of $ 6.6 billion, a 35 % increase from the previous year’s same period
• Earnings per share of $ 1.5. It more than doubled when compared to EPS from the previous year’s same period
• Operating cash flow was reported at $ 1.7 billion

FCX has a market capitalization of around $ 49 billion. The share of the company is currently trading at a price of $ 33.82. The stock has been on a bullish trend for the past two years. In 2021, the stock went from $ 26.02 to $ 33.82 representing a 30 % increase during the year. In 2022, the stock peaked at $ 51.3 and has dropped by 19 % to date. 

Studying the price forecasts of FCX, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 65
• Median Target of $ 50
• Low Estimate of $ 29

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Teck Resources Limited

Teck is one of Canada’s leading mining companies with operations and projects in Canada, the United States, Chile, and Peru. It is engaged in mining and the development of mineral properties. Its product portfolio includes steelmaking coal, copper, zinc, energy, other metals, industrial products and fertilizers, and technology sites. Cybersecurity stocks are also one of the best investment opportunities.

In the quarterly report for 2022, Teck Resourced reported:

• Revenue of $ 5 billion
• Net Profit of $ 1.6 billion
• Earnings per share of $ 2.93
• Cash flows from operations of $2.3 billion

Teck has a market capitalization of around $ 19.8 billion. The share of the company is currently trading at a price of $ 36.46. The stock has been on a bullish trend for the past two years. In 2021, the stock went from $ 18.15 to $ 28.82 representing a 59 % increase during the year. In 2022, the highest the stock went, to date, is $ 43.89. To date, the stock has appreciated by 26 %, till date.

Studying the price forecasts of Teck, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 60.07
• Median Target of $ 49.8
• Low Estimate of $ 39.84

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B2Gold Corp.

B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. B2Gold has three operating gold mines and numerous development and exploration projects in various countries including Mali, the Philippines, Namibia, Colombia, Finland, and Uzbekistan. Investors are now looking for the finest solar energy stocks to invest in.

B2Gold reported its financial results for the first quarter of 2022:

• Gold revenue was $366 million on sales of 195,100 ounces compared to $362 million on sales of 202,330 ounces in the first quarter of 2021
• Total gold production in the first quarter of 2022 was 209,365 ounces
• Net income for the first quarter of 2022 was $91 million compared to $99 million for the first quarter of 2021. 
• Earnings per share were $ 0.08 compared to $ 0.09 million for the first quarter of 2021

B2Gold has a market capitalization of around $ 3.9 billion. The share of the company is currently trading at a price of $ 3.64. During the last quarter of 2020, the stock dropped by 20 %. Since then, the stock is trading at a price below $ 5 and has not achieved its previous highs.

In 2021, the stock went from $ 5.4 to $ 3.93 representing a 27 % increase during the year. In 2022, the stock has depreciated by 7 %, to date.

Studying the price forecasts of BTG, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 8.57
• Median Target of $ 6
• Low Estimate of $ 5.17

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Enviva Inc.

Enviva is a leading global energy company specializing in sustainable wood bioenergy. It is the world’s largest producer of sustainable wood pellets, which provide a low-carbon alternative to fossil fuels. Enviva owns and operates 10 plants with a combined production capacity of approximately 6.2 million metric tons per year in Virginia, North Carolina, South Carolina, Georgia, Florida, and Mississippi. Get to know the best EV stocks to invest in today.

Enviva Reports First-Quarter 2022 Results:

• Revenue of $ 233 million for the first quarter of 2022, as compared to a net loss of $ 241.6 million for the first quarter of 2021
• Net loss of $45.3 million for the first quarter of 2022, as compared to a net loss of $23.2 million for the first quarter of 2021

Enviva inc. has a market capitalization of around $ 3.9 billion. The share of the company is currently trading at a price of $ 58.68. The stock is on a bullish trend for the past two years. 

In 2021, the stock went from $ 45.42 to $ 70.42 representing a 55 % increase during the year. In 2022, the stock peaked at $ 77.71. After hitting the peak, the stock dropped considerably. Overall, the stock depreciated during 2022. From a price of $ 70.42 to $ 58.68, the stock dropped by 17 % to date.

Studying the price forecasts of Enviva Inc, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 100
• Median Target of $ 78
• Low Estimate of $ 70

Alpha Metallurgical Resources Inc.

Alpha Metallurgical Resources is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves, and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. Tech stocks is also one of the best investment opportunity.

Alpha Metallurgical Resources report first-quarter 2022 results:

• Total Revenues of $ 1 billion
• Net income from continuing operations of $401.0 million as compared to a net loss of $ 32.7 million for the first quarter of 2021
• Earnings per share of $ 20.52

Alpha Metallurgical Resources Inc. has a market capitalization of around $ 2.7 billion. The share of the company is currently trading at a price of $ 144.71. The company changed its name from Contura Energy, Inc. to Alpha Metallurgical Resources Inc. in Feb 2021. Since then, the stock is on a bullish trend for the past two years. 

In 2021, the stock went from $ 15.2 to $ 61 representing a 3-fold increase during the year. In 2022, the stock peaked at $ 77.71. After hitting the peak, the stock dropped considerably. Overall, the stock continued its bullish journey.  To date, the stock has appreciated by almost 300 % from a price of $ 61.02 to $ 172.42.

Studying the price forecasts of AMR, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 181
• Median Target of $ 181
• Low Estimate of $ 181

LSB Industries, Inc.

LSB Industries is the leading North American producer of industrial and agricultural chemicals. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), urea ammonia nitrate for fertilizer and fertilizer blends for corn and other crops, and NPK fertilizer blends applications.

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LSB Industries reported quarterly results for the FY 2022:

• Sales were reported to be $ 199 million. Sales more than doubled owing to the increase in prices of its products
• Operating income was reported at $ 80 million, as compared to operating loss during the same period last year
• Earnings per share were reported at $ 0.69

LSB Industries, Inc. has a market capitalization of around $ 1.46 billion. The share of the company is currently trading at a price of $ 16.34. The stock has been steadily rising for the past two years. The stock peaked at $ 25.62 in April 2022 after that the stock has been declining

In 2021, the stock went from $ 2.61 to $ 11.05 representing a 3-fold increase during the year. In 2022, the stock went from $ 11.05 to $ 16.34 representing an approx. 50 %increase during the year.

Studying the price forecasts of LXU, the CNN Money Analysts have predicted a 12-month price forecast of 

• • High Estimate of $ 27
  • Median Target of $ 25.48
  • Low Estimate of $ 23.95

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Sun Coke Energy Inc.

Sun Coke Energy, Inc. is a producer of coke in America. The Company operates through three segments: 

• Domestic 3Coke
• Brazil Coke 
• Logistics

Coke is an essential ingredient in blast furnace production of steel. Sun Coke has 5.9 million tons of annual coke-making capacity.

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Sun Coke reported its first quarterly report for the FY 2022:

• Revenue was reported at $ 439.8 million, as compared to $ 359.9 during the first quarter of 2021
• Net Income was $ 29.5 million, as compared to $ 16.5 during the first quarter of 2021
• Earnings per share were $ 0.35

Sun Coke Energy Inc. has a market capitalization of around $ 554 million. The share of the company is currently trading at a price of $ 6.65. The stock is on a bullish trend for the past two years. 

In 2021, the stock went from $ 4.35 to $ 6.59 representing a 51 % increase during the year. In 2022, the stock peaked at $ 9.73. After hitting the peak, the stock dropped considerably. As a result, there is only a slight change in stock price, to date

Studying the price forecasts of SXC, the CNN Money Analysts have predicted a 12-month price forecast of 

• High Estimate of $ 11
• Median Target of $ 10.5
• Low Estimate of $ 10

Arch Resources (ARCH)

Arch Coal, Inc. is a diversified coal company, which produces and markets coal. The company is engaged in supplying cleaner-burning, low-sulfur thermal and metallurgical coal to power generators and steel manufacturers. It operates through the following segments:

• Powder River Basin – The Powder River Basin segment has operations in Wyoming
• Western Bituminous – The Western Bituminous segment has operations in Utah, Colorado, and Southern Wyoming.
• Appalachia – The Appalachia segment has operations in West Virginia, Kentucky, Maryland, and Virginia
• Other – The Other segment represents primarily the company’s Illinois operations.

Arch is a demonstrated leader in mine safety, with an average lost-time incident rate during the past five years that is nearly 2.5 times better than the industry average. Arch subsidiaries have won 10 Sentinels of Safety awards — the nation’s highest honor for excellence in mine safety — in the past 11 years.

In the recent third-quarter report for the year 2022, the company reported:

• Revenues were reported at $ 864 million, as compared to $ 594.4 million in the previous year’s same period
• Income from operations was reported at $ 184.6 million, as compared to $ 95.4 billion in the previous year’s same period
• Net Income was reported at $ 181 million as compared to $ 89 million in the previous year’s same period
• Earnings per share were reported at $ 9.84 as compared to $ 5.83 in the previous year’s same period

Arch Resources has a market cap of $ 2.56 billion. Its shares are trading at $ 141.24.

The share of the company has been on a bullish run in the past two years.

The stock started off the year 2021 at $ 43.77 and closed off at $ 91.32 representing a 108.7 % appreciation during the year.

In 2022, the stock continued its bullish behavior while exhibiting volatility. From a price of $ 91.32 the stock last closed at $ 142.79 representing 56.47 %.

Cheniere Energy (LNG)

Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with a total production capacity of approximately 45 mtpa of LNG in operation and an additional 10+ mtpa of expected production capacity under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain.

Cheniere Energy, Inc. recently announced its financial results for the third quarter of 2022:

• Revenues were reported at $ 8.8 billion, as compared to $ 3.2 billion in the previous year’s same quarter
• Loss from operations was reported at ($ 3) billion, as compared to ($ 2.35) billion in the previous year’s same period
• Net Loss was reported at ($ 2.4) billion as compared to ($ 1.1) billion in the previous year’s same period

Cheniere Energy has a market cap of $ 35.7 billion. Its shares are trading at $ 143.49.

The stock has been bullish in the past two years.

In 2021, the stock started off at $ 60.03. The stock remained bullish throughout the year and closed off at $ 101.42 representing a 59 % appreciation during the year.

In 2022, the stock continued its bullish run. After hitting the peak of $ 175.79, the stock eventually closed at $ 149.96. Overall, the stock appreciated by 14 %.

Bunge (BG)

Bunge Ltd. operates as a holding company, which engages in the supply and transportation of agricultural commodities. It operates through the following segments: 

• Agribusiness – The Agribusiness segment involves the purchase, storage, transportation, processing, and sale of agricultural commodities and commodity products
• Edible Oil Products – The Edible Oil Products segment includes the production and sale of vegetable oils, shortenings, margarine, and mayonnaise.
• Milling Products – The Milling Products segment consists of the production and sale of wheat flours, bakery mixes, corn-based products, and rice
• Sugar and Bioenergy – The Sugar and Bioenergy segment comprises the manufacture and marketing of sugar and ethanol derived from sugarcane, as well as energy derived from the sugar and ethanol production process.
• Fertilizer – The Fertilizer segment focuses on producing, blending, and distributing fertilizer products for the agricultural industry.

The company recently reported its third-quarter results for 2022:

• Net Income was reported at $ 380 million, as compared to $ 653 million in the previous year’s same period
• Earnings per share were reported at $ 2.49 as compared to $ 4.28 in the previous year’s same quarter

Bunge has a market cap of $ 14.7 billion. It has a market cap of $ 98.04. 

The stock remained bullish for the major part of the past two years. In 2021, the stock remained bullish throughout. From $ 65.58 the stock closed off the year at $ 93.36 representing a 42 % appreciation during the year.

In 2022, the stock started off with bullish behavior. After hitting the peak of $ 123.96 the stock reversed its course and started to decline. The stock closed off the year at $ 99.77 representing a 7 % appreciation in the year.

Albemarle (ALB)

Albemarle Corp. is a specialty company, which engages in developing, manufacturing, and marketing chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, transportation, pharmaceuticals, crop production, food safety, and custom chemistry services.

It operates through the following segments: 

• Lithium – The Lithium segment engages in the development and manufacture of basic lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties and reagents.
• Bromine Specialties – The Bromine Specialties segment consists of a bromine and bromine-based business that includes products used in fire safety solutions and other specialty chemicals applications.
• Catalysts – The Catalysts segment contains two product lines: clean fuels technologies, which are primarily composed of hydroprocessing catalysts, and heavy oil upgrading which comprises fluidized catalytic cracking catalysts and additives.

Albemarle Corporation recently announced its results for the third quarter that ended Sept. 30, 2022:

• Net sales were reported at $ 2.1 billion, an increase of 152 % from the previous year’s same quarter
• Net income of $ 897.2 million, a multi-fold increase from the previous year’s same quarter when the company reported a loss of ($ 393) million
• Earnings per share were reported at $ 7.61 per diluted share, a multi-fold increase from the previous year’s same quarter

Albemarle has a market cap of $ 26.24 billion. Its shares have been trading at $ 224.

The stock of the company has been bullish while exhibiting volatility. In 2021, the stock went from $ 147.52, at the start of the year, to $ 233.77, at the end of the year. Overall, the stock appreciated by 58.5 %.

In 2022, the stock continued its bullish and volatile behavior. The stock closed the year at $ 216.86, representing a 7 % decline in 2022. 

Intrepid Potash, Inc. (IPI)

Intrepid Potash, Inc. (IPI) engages in the extraction and production of potash globally. Potash is a potassium-rich salt mined from sea beds, used primarily in fertilizers to support crop yields and enhance water preservation.

The company serves the agriculture, organics, animal feed, industrial, and oilfield solutions industries. It operates through the following segments: 

• Potash
• Oilfield Solutions
• Trio.

Intrepid Potash, Inc. recently reported its results for the third quarter of 2022:

• Net sales were reported at $ 74.8 million, as compared to $ 59.15 million during the previous year’s third quarter
• Operating income was reported at $ 17.45 million as compared to $ 4.1 million during the previous year’s third quarter
• Net income was reported at $ 13.1 million as compared to $ 4 million during the previous year’s third quarter
• Earnings per share were reported at $ 0.99 as compared to $ 0.31 during the previous year’s third quarter

IPI has a market cap of $ 417 million. Its shares are trading at $ 30.91.

During 2021, the share maintained a steady bullish pattern. It started off at $ 24.15 and closed off the year at $ 42.73 representing a 77 % appreciation during the year.

In 2022, after an initial steady pattern, the stock sky rocketed and peaked at $ 111.95. Eventually, the stock closed off at $ 28.87 representing a 32.5 % decline during the year. 

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