Basic materials stocks appeal to investors for a few different reasons.

• They provide exposure to raw materials like metals, chemicals, and lumber, which are essential for various industries.
• Basic materials companies benefit from rising commodity prices, offering investors a way to capitalize on price increases in gold, copper, and oil.
• Basic materials stocks can be a hedge against inflation, as the value of natural resources tends to increase when inflation rises.

In the year to date, the Morningstar US Basic Materials Index rose 7.22%, while the Morningstar US Market Index gained 13.62%.

The 12 Best Basic Materials Stocks to Buy Now

These were the most undervalued basic materials stocks that Morningstar’s analysts cover as of Nov. 19,…