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Quarter-End Insights

Basic Materials: Opportunities Arise Amid Continued Decline in Share Prices

Most of the discounts are concentrated in only a few industries.

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The Morningstar US Basic Materials Index has slightly underperformed the broader market by roughly 170 basis points over the past year (Exhibit 1). As a result, 30% of stocks now trade in 4- and 5-star territory (Exhibit 2).

U.S. Materials Index vs. U.S. Equity Index. - source: Morningstar

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