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5 Best Commodity Stocks to Buy for Q2 2025
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Our experts pick out which commodity stocks look like a good buy in 2025. Keep reading for detailed analysis of the best commodity stocks and a breakdown of why you might want to invest in them.
What are the top commodity stocks to buy?
Copy link to sectionThese are the best commodities stocks to buy because they are companies with established portfolios, diverse projects, and lots of potential developments in their pipeline. In the next section, we have selected the best stocks that can help you get exposure to the commodities market.
# | Stock ticker | Commodity stock name | Learn more |
---|---|---|---|
1 | U.S. Steel Corporation | Learn more > | |
2 | Cleveland-Cliffs | Learn more > | |
3 | Freeport-McMoRan | Learn more > | |
4 | Alcoa | Learn more > | |
5 | ExxonMobil | Learn more > |
1. U.S. Steel Corporation
Copy link to section- Market Cap: $8.59 billion
- TTM Revenue: $17.4 billion
- Forward Revenue Growth: -6.65%
- P/E Ratio: 11
- Stock Price: $38
US Steel is one of the best commodity stocks in the United States. It is a leading steel company that manufactures steel in several big plants in the US. It has also benefited from the recent investments in infrastructure.
US Steel’s revenue came in at $18 billion in 2023 while its net income was almost $900 million. However, the company may change ownership soon following the takeover bid by Nippon Steel, a leading Japanese company in a $15 billion deal.
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2. Cleveland-Cliffs
Copy link to section- Market Cap: $7.32 billion
- TTM Revenue: $21.9 billion
- Forward Revenue Growth: -2.5%
- P/E Ratio: 20
- Stock Price: $15.39
Cleveland Cliffs is another leading company in the steel industry with over $22 billion in annual profits and over $1 billion in annual profits.
The company was one of the suitors of US Steel before Nippon won the bid. Its top benefits are that it is a profitable company with a strong market share in the United States. It is also a top rewarder of its investors.
The main challenge for Cleveland Cliffs and other steel companies is that they are competing with Chinese companies that are operating at an overcapacity. That will likely lead to thinner margins in the future.
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3. Freeport-McMoRan
Copy link to section- Market Cap: $69.5 billion
- TTM Revenue: $21.9 billion
- Forward Revenue Growth: 6.12%
- P/E Ratio: 42
- Stock Price: $48.4
Freeport-McMoRan is another top commodity company to consider. Unlike the other two, FCX does not manufacture the end product. Instead, it mines and sells its commodities to companies from around the world.
It has operations in North America, South America, and Indonesia. It is a great commodity company because of its focus on copper, one of the most important metals in the industry.
This importance was laid bare when BHP made a bid for Anglo American, one of the leading mining companies in the world. Most analysts also expect that copper prices will continue soaring as the decarbonisation trend continues. This explains why the company is trading at a big premium.
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4. Alcoa
Copy link to section- Market Cap: $7.13 billion
- TTM Revenue: $10.7 billion
- Forward Revenue Growth: -2.17%
- P/E Ratio: 256
- Stock Price: $39.70
Alcoa is a leading American company that focuses on the aluminium, alumina, and bauxite sectors. Its business has been stable in the past few years, with annual revenue remaining around $10.5 billion.
However, the company has also recorded substantial losses over the years because of the rising cost of doing business. It has lost over $2 billion in the past five years.
The management, however, has committed to lowering costs and boosting profitability in the coming years.
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5. ExxonMobil
Copy link to section- Market Cap: $453 billion
- TTM Revenue: $335 billion
- Forward Revenue Growth: -4.8%
- P/E Ratio: 14
- Stock Price: $114.9
ExxonMobil is another top commodity stock to consider. It is the biggest energy company in the US with over a century of experience in the industry. Over the years, its annual profit has soared to over $32 billion, funds which the company mostly returns to its shareholders.
Exxon is a great dividend payer and is one of the best-performing companies in the commodity sector. Its stock has soared by over 104% in the past three years.
Despite several incidents, BP’s market capitalization remains immense. As of January 2021 BP has a market cap of $75.3 Billion. This makes BP the world’s 197th most valuable company by market cap according to our data.
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Where to buy the best commodity stocks
Copy link to sectionTrading commodities stocks online is a relatively simple process. It requires access to an exchange and a basic understanding of what commodities are and how they react to economic, political and market changes and trends. Once you have a good grasp of the basics, you should pick a reliable commodities broker. It is always best to opt for one that offers online trading.
Until recently, the commodities market was mostly reserved for large companies and institutional investors. However, individual investors have also gained a point of entry via licensed commodity brokers that operate on commodity exchanges, such as the New York Mercantile Exchange, the Chicago Mercantile Exchange (CME Group), the Tokyo Commodity Exchange, the London Metal Exchange, the European Energy Exchange, the Moscow Energy Exchange and others.
We’ve shortlisted the best commodity stocks to buy in 2025 and you can start trading them in our recommended brokers by clicking on the buttons of the following table.
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This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.
How to trade and invest in commodity shares?
Copy link to section1.Open an trading account
First, you need to pick a reliable broker and register on their platform. Exchanges do not work with retail (or individual) investors, so you need to buy commodities shares through a registered broker. To do so, you will have to follow the steps outlined on their site and pass KYC before being able to place an order.
2.Choose best commodities shares to buy
Once you have registered with a broker, it’s time to pick the commodities shares that best meet you risk tolerance and investor profile. If you have a higher risk tolerance, you may buy commodities shares of companies that are developing new treatments and drugs. There is some risk involved but the potential payoff is also greater.
3.Start investing/trading
After making your selection, you are ready to start investing in the best commodities stocks or trade them. There is not much of a difference between the two, except the length of time you’re holding them for. If you are buying commodities shares as an investment, it’s best to hold onto them. However if you want to trade them, then you should keep track of market movements and sell them when the price hits a level that lets you pocket a profit from the deal.
What are commodity stocks?
Copy link to sectionCommodity stocks are the stocks of companies that produce and distribute commodities. As a term, ‘commodities’ encompasses several groups like agricultural commodities, industrial metals, precious metals, and energy commodities. All of these commodities have different value drivers and risk-return trade-offs.
What are the trading hours for commodities shares?
Copy link to sectionCommodities shares can be purchased from and traded on all major stock exchanges provided that the company is publicly listed. Therefore, commodities shares can be traded during the working hours of each exchange and they cannot be traded and/or purchased outside of business works. If you place an order with a broker or an exchange, it will be executed once the market opens.
Are commodity stocks a good investment?
Copy link to sectionYes. Commodities shares are a good investment right now due to the strong interest in sustainable agriculture, livestock farming, mining and oil and gas exploration. Demand for commodities is growing both due to their industrial use and market demand.
Commodity trading can be a successful venture in the long haul if the chosen broker commodities’ provides a trading environment that is trustworthy, reliable and technologically advanced. Opting for a reputable, reliable and regulated online broker increases your chances at success when trading commodities, Forex, metals, cryptocurrencies and commodity futures CFDs.
Whether trading spot commodities, futures or derivatives – traders need to exercise caution in the commodity markets. Commodities are volatile instruments and traders often need to react quickly to market-moving events. The potential gains from trading on the spot commodity market are high but the potential for losses is just as great.
Methodology: How we choose the best commodity stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.