Commodities investing can be very profitable, especially in the US market where there are so many opportunities. Commodities such as precious metals, energy, and agricultural products offer a way to diversify your portfolio and hedge against market volatility.
The best US commodities stocks not only perform well and are stable but also can generate big returns over time.
We will look at some of the top-performing commodities stocks in the US, their market position, growth potential, and why they stand out in the crowd.
Whether you’re an experienced investor looking to fine-tune your strategy or a new investor looking for reliable investments, understanding these top commodities stocks will help you make informed decisions.
Top Commodities Stocks For 2024
Here are the Top commodities stocks revenue-wise
Best Commodity Stocks In USA Today
1. Albemarle
Overview: Albemarle Corporation, headquartered in Charlotte, North Carolina, is a global specialty chemicals company renowned for its production of lithium, bromine, and catalyst solutions. With a significant presence in the lithium market, especially in compounds crucial for electric vehicles and energy storage systems, Albemarle operates across three segments: Lithium, Bromine Specialties, and Catalysts.
Ticker: NYSE: ALB
- Forward PE: 24.21
- P/E Ratio: 40.69
- Revenue: $9.62 Billion
2. Vale
Overview: Vale S.A., a Brazilian multinational mining giant headquartered in Rio de Janeiro, is a key player in the global commodities market, particularly in iron ore and nickel production. Operating across various segments, including ferrous minerals, coal, base metals, and logistics, Vale commands a significant presence in the industry.
Ticker: NYSE: VALE
- Forward PE: 4.98
- P/E Ratio: 6.30
- Revenue: $208.07 Billion
3. Newmont
Overview: Newmont Corporation, headquartered in Denver, Colorado, is a prominent gold mining company with operations spanning multiple continents. Renowned for its extensive gold reserves and commitment to sustainable mining practices, Newmont is a stalwart in the commodities market.
Ticker: NYSE: NEM
- Forward PE: 15.74
- P/E Ratio: 0
- Revenue: $11.81 Billion
4. Wheaton Precious Metals
Overview: Wheaton Precious Metals is a streaming company specializing in providing financing to mining firms in exchange for the right to purchase precious metals production at discounted rates, primarily focusing on gold and silver.
Ticker: NYSE: WPM
- Forward PE: 40.83
- P/E Ratio: 45.55
- Revenue: $1.02 Billion
5. Bunge
Overview: Bunge Limited, headquartered in White Plains, New York, is a global agribusiness and food company operating across sectors such as grain trading, oilseed processing, edible oil products, sugar milling, and fertilizer production.
Ticker: NYSE: BG
- Forward PE: 10.61
- P/E Ratio: 8.28
- Revenue: $59.54 Billion
6. Cheniere Energy, Inc
Overview: Cheniere Energy, Inc., based in Houston, Texas, is a leading liquefied natural gas (LNG) company specializing in LNG infrastructure development, including liquefaction plants, regasification terminals, and LNG marketing.
Ticker: NYSE: LNG
- Forward PE: 19.14
- P/E Ratio: 3.91
- Revenue: $19.78 Billion
Future Commodities Market
The future of US commodities will be defined by the energy transition, increasing renewables, and changing the market. More customer focus especially in mining and metals as green product demand grows. Food and energy convergence will happen, as biofuels, and cross-commodity activity.
Traders need to be flexible and regulatory compliant, especially with the CFTC’s growing role. It will be a messy landscape ahead, with opportunities for sustainability, and customer needs.
Methodology
Supply and Demand: Commodities are affected by supply and demand imbalances. Prices can move up or down due to changes in demand or supply constraints which can be caused by many factors such as economic cycles, geopolitics, and production costs.
Price Drivers: Each commodity has its price drivers. For example, oil stocks is driven by supply and demand, gold is driven by demand, central bank buying, and geopolitics.
Diversification: Commodities can diversify a portfolio by acting as a hedge against inflation and reducing overall risk. They often have a low or negative correlation with traditional asset classes like stocks and bonds.
Investment Vehicles: Investors can invest in commodities through physical commodities, futures contracts, stocks, ETFs, and mutual funds. Each has its risks and benefits.
Market Trends: Understanding market trends and sentiment is key to picking the right commodities stocks. For example, extreme negative positioning can lead to big price moves when normalized.
Company Performance: Investing in companies that produce commodities can be an option. However, these stocks come with their risks and may not always track the underlying commodity price.
Regulation: Commodities are regulated by bodies such as the Commodity Futures Trading Commission (CFTC) which ensures fair trading practices
Investing in commodity ETFs offers a practical way to diversify your portfolio, hedge against inflation, and gain exposure to essential commodities. The six best commodity ETFs in the US—SPDR Gold Shares, iShares Silver Trust, United States Oil Fund, Invesco DB Agriculture Fund, Invesco DB Commodity Index Tracking Fund, and VanEck Vectors Gold Miners ETF—each provide unique advantages and can play a crucial role in a well-rounded investment strategy.
Read More - The 7 Best Stocks to Buy in the UK Right Now
Note: The information provided was selected by an experienced financial analyst, but it may or may not be suitable for your portfolio. Before making any purchases, conduct your own research and then make a decision
Frequently Asked Questions ( FAQ )
What is the best commodity ETF for beginners?
For beginners, SPDR Gold Shares (GLD) is often recommended due to its stability and the historical performance of gold.
Are commodity ETFs a good hedge against inflation?
Yes, commodities like gold and agriculture often rise with inflation, making them effective hedges.
Is it better to invest in single-commodity or multi-commodity ETFs?
It depends on your investment goals. Single-commodity ETFs offer targeted exposure, while multi-commodity ETFs provide broader diversification.