10 Best High Quality Basic Materials Stocks for November 2025
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Market Overview & Selection Criteria
The current market environment presents a mix of volatility and opportunity, especially for investors seeking undervalued stocks with strong fundamentals. Our selection process leverages ValueSense’s proprietary analytics, focusing on companies with high quality ratings, robust free cash flow, and attractive intrinsic value relative to their current market price. We prioritized stocks from sectors such as basic materials, precious metals, and industrial commodities, where recent performance and underlying financial health suggest potential for continued growth. Each stock was evaluated using ValueSense’s intrinsic value calculator, earnings sentiment analysis, and fundamental screening tools to ensure a data-driven approach to stock selection.
Featured Stock Analysis
Stock #1: Linde plc (LIN)
| Metric | Value |
|---|---|
| Market Cap | $196.1B |
| Quality Rating | 6.5 |
| Intrinsic Value | $255.4 |
| 1Y Return | -8.0% |
| Revenue | $33.5B |
| Free Cash Flow | $5,076.0M |
| Revenue Growth | (10.6%) |
| FCF margin | 15.2% |
| Gross margin | 33.4% |
| ROIC | 10.0% |
| Total Debt to Equity | 58.8% |
Investment Thesis
Linde plc stands out as a global leader in industrial gases, with a market cap of $196.1 billion and a strong intrinsic value of $255.40 per share. The company’s revenue of $33.5 billion and free cash flow of $5.1 billion highlight its operational scale and financial stability. Linde’s quality rating of 6.5 reflects solid fundamentals, including a 15.2% free cash flow margin and a 33.4% gross margin. Despite a modest 10.6% revenue growth, Linde’s diversified business model and global reach position it well for long-term value creation.
Key Catalysts
- Global demand for industrial gases in manufacturing and healthcare
- Expansion into clean energy and hydrogen markets
- Strong free cash flow supporting dividends and reinvestment
Risk Factors
- Exposure to cyclical industries
- High debt-to-equity ratio 58.8%
- Regulatory risks in international markets
Stock #2: Southern Copper Corporation (SCCO)
| Metric | Value |
|---|---|
| Market Cap | $114.2B |
| Quality Rating | 8.1 |
| Intrinsic Value | $61.2 |
| 1Y Return | 30.1% |
| Revenue | $12.3B |
| Free Cash Flow | $3,829.5M |
| Revenue Growth | 12.7% |
| FCF margin | 31.0% |
| Gross margin | 53.2% |
| ROIC | 31.4% |
| Total Debt to Equity | 69.9% |
Investment Thesis
Southern Copper Corporation, with a market cap of $114.2 billion, is a top performer in the mining sector. Its intrinsic value of $61.20 per share and a quality rating of 8.1 underscore its strong fundamentals. SCCO’s revenue of $12.3 billion and free cash flow of $3.8 billion are supported by a 31.0% free cash flow margin and a 53.2% gross margin. The company’s 12.7% revenue growth and 31.4% ROIC highlight its operational efficiency and profitability.
Key Catalysts
- Rising global demand for copper in infrastructure and technology
- High-quality mining assets with low production costs
- Strong cash flow generation supporting shareholder returns
Risk Factors
- Commodity price volatility
- Environmental and regulatory challenges
- Geopolitical risks in key operating regions
Stock #3: Newmont Corporation (NEM)
| Metric | Value |
|---|---|
| Market Cap | $88.8B |
| Quality Rating | 7.7 |
| Intrinsic Value | $77.1 |
| 1Y Return | 80.3% |
| Revenue | $21.3B |
| Free Cash Flow | $6,122.0M |
| Revenue Growth | 26.0% |
| FCF margin | 28.8% |
| Gross margin | 45.6% |
| ROIC | 14.9% |
| Total Debt to Equity | 16.9% |
Investment Thesis
Newmont Corporation, a leader in gold mining, boasts a market cap of $88.8 billion and an intrinsic value of $77.10 per share. The company’s quality rating of 7.7 is supported by $21.3 billion in revenue and $6.1 billion in free cash flow. Newmont’s 26.0% revenue growth and 28.8% free cash flow margin reflect its strong operational performance. With a low debt-to-equity ratio of 16.9%, Newmont is well-positioned to capitalize on rising gold prices.
Key Catalysts
- Increasing demand for gold as a safe-haven asset
- Expansion of mining operations in key regions
- Strong cash flow supporting dividends and reinvestment
Risk Factors
- Commodity price volatility
- Operational risks in mining activities
- Regulatory and environmental challenges
Stock #4: Agnico Eagle Mines Limited (AEM)
| Metric | Value |
|---|---|
| Market Cap | $80.8B |
| Quality Rating | 7.8 |
| Intrinsic Value | $92.3 |
| 1Y Return | 88.0% |
| Revenue | $10.5B |
| Free Cash Flow | $3,669.3M |
| Revenue Growth | 33.6% |
| FCF margin | 34.9% |
| Gross margin | 54.0% |
| ROIC | 9.5% |
| Total Debt to Equity | 1.4% |
Investment Thesis
Agnico Eagle Mines Limited, with a market cap of $80.8 billion, is a top-tier gold producer. Its intrinsic value of $92.30 per share and quality rating of 7.8 reflect strong fundamentals. AEM’s revenue of $10.5 billion and free cash flow of $3.7 billion are supported by a 34.9% free cash flow margin and a 54.0% gross margin. The company’s 33.6% revenue growth and 9.5% ROIC highlight its operational efficiency.
Key Catalysts
- Rising gold prices and demand for precious metals
- Expansion of mining operations in North America
- Strong cash flow supporting shareholder returns
Risk Factors
- Commodity price volatility
- Operational risks in mining activities
- Regulatory and environmental challenges
Stock #5: Wheaton Precious Metals Corp. (WPM)
| Metric | Value |
|---|---|
| Market Cap | $43.8B |
| Quality Rating | 7.5 |
| Intrinsic Value | $28.0 |
| 1Y Return | 46.6% |
| Revenue | $1,662.4M |
| Free Cash Flow | $759.2M |
| Revenue Growth | 45.9% |
| FCF margin | 45.7% |
| Gross margin | 71.3% |
| ROIC | 11.5% |
| Total Debt to Equity | 0.1% |
Investment Thesis
Wheaton Precious Metals Corp., with a market cap of $43.8 billion, is a leading precious metals streaming company. Its intrinsic value of $28.00 per share and quality rating of 7.5 reflect strong fundamentals. WPM’s revenue of $1.7 billion and free cash flow of $759.2 million are supported by a 45.7% free cash flow margin and a 71.3% gross margin. The company’s 45.9% revenue growth highlights its rapid expansion.
Key Catalysts
- Rising demand for precious metals in technology and investment
- Diversified portfolio of streaming agreements
- Strong cash flow supporting shareholder returns
Risk Factors
- Commodity price volatility
- Dependence on mining partners
- Regulatory and environmental challenges
Stock #6: Corteva, Inc. (CTVA)
| Metric | Value |
|---|---|
| Market Cap | $41.9B |
| Quality Rating | 7.5 |
| Intrinsic Value | $35.3 |
| 1Y Return | 1.4% |
| Revenue | $17.2B |
| Free Cash Flow | $3,857.0M |
| Revenue Growth | 1.6% |
| FCF margin | 22.5% |
| Gross margin | 45.7% |
| ROIC | 4.8% |
| Total Debt to Equity | 13.9% |
Investment Thesis
Corteva, Inc., with a market cap of $41.9 billion, is a leader in agricultural products. Its intrinsic value of $35.30 per share and quality rating of 7.5 reflect strong fundamentals. CTVA’s revenue of $17.2 billion and free cash flow of $3.9 billion are supported by a 22.5% free cash flow margin and a 45.7% gross margin. The company’s 1.6% revenue growth and 4.8% ROIC highlight its stable performance.
Key Catalysts
- Growing demand for agricultural products
- Innovation in crop protection and seed technologies
- Strong cash flow supporting shareholder returns
Risk Factors
- Commodity price volatility
- Regulatory challenges in agriculture
- Weather-related risks
Stock #7: Martin Marietta Materials, Inc. (MLM)
| Metric | Value |
|---|---|
| Market Cap | $37.2B |
| Quality Rating | 6.5 |
| Intrinsic Value | $333.5 |
| 1Y Return | 3.8% |
| Revenue | $6,685.0M |
| Free Cash Flow | $963.0M |
| Revenue Growth | 1.0% |
| FCF margin | 14.4% |
| Gross margin | 29.4% |
| ROIC | 7.6% |
| Total Debt to Equity | 62.0% |
Investment Thesis
Martin Marietta Materials, Inc., with a market cap of $37.2 billion, is a leader in construction materials. Its intrinsic value of $333.50 per share and quality rating of 6.5 reflect solid fundamentals. MLM’s revenue of $6.7 billion and free cash flow of $963.0 million are supported by a 14.4% free cash flow margin and a 29.4% gross margin. The company’s 1.0% revenue growth and 7.6% ROIC highlight its stable performance.
Key Catalysts
- Infrastructure spending and construction demand
- Expansion of operations in key markets
- Strong cash flow supporting shareholder returns
Risk Factors
- Cyclical nature of construction industry
- Regulatory and environmental challenges
- Commodity price volatility
Stock #8: Franco-Nevada Corporation (FNV)
| Metric | Value |
|---|---|
| Market Cap | $36.0B |
| Quality Rating | 6.7 |
| Intrinsic Value | $53.6 |
| 1Y Return | 41.1% |
| Revenue | $1,336.2M |
| Free Cash Flow | ($937.6M) |
| Revenue Growth | 17.9% |
| FCF margin | (70.2%) |
| Gross margin | 75.6% |
| ROIC | 12.9% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Franco-Nevada Corporation, with a market cap of $36.0 billion, is a leading precious metals royalty company. Its intrinsic value of $53.60 per share and quality rating of 6.7 reflect strong fundamentals. FNV’s revenue of $1.3 billion and negative free cash flow of $937.6 million are supported by a 75.6% gross margin. The company’s 17.9% revenue growth and 12.9% ROIC highlight its operational efficiency.
Key Catalysts
- Rising demand for precious metals
- Diversified portfolio of royalty agreements
- Strong cash flow supporting shareholder returns
Risk Factors
- Commodity price volatility
- Dependence on mining partners
- Regulatory and environmental challenges
Stock #9: Gold Fields Limited (GFI)
| Metric | Value |
|---|---|
| Market Cap | $34.4B |
| Quality Rating | 8.0 |
| Intrinsic Value | $34.4 |
| 1Y Return | 133.1% |
| Revenue | $10.9B |
| Free Cash Flow | $2,046.4M |
| Revenue Growth | 24.6% |
| FCF margin | 18.7% |
| Gross margin | 43.1% |
| ROIC | 42.7% |
| Total Debt to Equity | 40.9% |
Investment Thesis
Gold Fields Limited, with a market cap of $34.4 billion, is a top-tier gold producer. Its intrinsic value of $34.40 per share and quality rating of 8.0 reflect strong fundamentals. GFI’s revenue of $10.9 billion and free cash flow of $2.0 billion are supported by a 18.7% free cash flow margin and a 43.1% gross margin. The company’s 24.6% revenue growth and 42.7% ROIC highlight its operational efficiency.
Key Catalysts
- Rising gold prices and demand for precious metals
- Expansion of mining operations in key regions
- Strong cash flow supporting shareholder returns
Risk Factors
- Commodity price volatility
- Operational risks in mining activities
- Regulatory and environmental challenges
Stock #10: AngloGold Ashanti Limited (AU)
| Metric | Value |
|---|---|
| Market Cap | $34.2B |
| Quality Rating | 7.9 |
| Intrinsic Value | $110.8 |
| 1Y Return | 144.6% |
| Revenue | $7,649.0M |
| Free Cash Flow | $1,786.0M |
| Revenue Growth | 3.1% |
| FCF margin | 23.3% |
| Gross margin | 42.9% |
| ROIC | 20.3% |
| Total Debt to Equity | 24.9% |
Investment Thesis
AngloGold Ashanti Limited, with a market cap of $34.2 billion, is a leading gold producer. Its intrinsic value of $110.80 per share and quality rating of 7.9 reflect strong fundamentals. AU’s revenue of $7.6 billion and free cash flow of $1.8 billion are supported by a 23.3% free cash flow margin and a 42.9% gross margin. The company’s 3.1% revenue growth and 20.3% ROIC highlight its operational efficiency.
Key Catalysts
- Rising gold prices and demand for precious metals
- Expansion of mining operations in key regions
- Strong cash flow supporting shareholder returns
Risk Factors
- Commodity price volatility
- Operational risks in mining activities
- Regulatory and environmental challenges
Portfolio Diversification Insights
This collection of stocks spans multiple sectors, including industrial gases, mining, precious metals, and construction materials. By including companies with varying market caps, revenue growth rates, and risk profiles, investors can achieve a well-diversified portfolio. The mix of high-quality, undervalued stocks provides exposure to both cyclical and defensive sectors, helping to balance risk and reward.
Market Timing & Entry Strategies
Investors should consider entering positions in these stocks during periods of market volatility or when sector-specific catalysts are present. Using ValueSense’s intrinsic value calculator and earnings sentiment analysis can help identify optimal entry points. Regular monitoring of key metrics and sector trends is recommended to adjust positions as market conditions evolve.
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FAQ Section
Q: How were these stocks selected?
A: These stocks were selected using ValueSense’s proprietary analytics, focusing on intrinsic value, quality ratings, and fundamental metrics. Each stock was evaluated for its potential to deliver long-term value.
Q: What's the best stock from this list?
A: The best stock depends on individual investment goals and risk tolerance. Stocks like Southern Copper Corporation and Newmont Corporation stand out for their strong fundamentals and growth potential.
Q: Should I buy all these stocks or diversify?
A: Diversification is recommended to balance risk and reward. Consider allocating investments across multiple sectors and companies to reduce exposure to any single stock or sector.
Q: What are the biggest risks with these picks?
A: The biggest risks include commodity price volatility, regulatory challenges, and operational risks in mining and industrial sectors. Investors should monitor these factors closely.
Q: When is the best time to invest in these stocks?
A: The best time to invest is during periods of market volatility or when sector-specific catalysts are present. Regular monitoring of key metrics and sector trends is recommended to identify optimal entry points.