As the old saying “Sell in May and go away”, the U.S. stock market experienced a bleak first week of May. Despite of the retreat of the three major U.S. stock indexes, there are still lots of opportunities to buy the best stocks to hold for a long time instead of running into the low-yield bonds or cash. Today, we share three best stocks in the in the basic materials sector, which have seen strong performance in their prices and have solid fundamentals.
Terra Nitrogen Company, L.P. (TNH) is the best stock with the largest gain of more than 42% in the basic materials sector since the beginning of this year. Terra Nitrogen is a leading manufacturer primarily engages in the production and sale of nitrogen fertilizer products.
The fertilizer producer had a great last year, more than doubling its share price in the past 52 weeks. Last Tursday, the company reported a profit of $124.2 million on revenue of $196.9 million for the first quarter ended March 31, 2012 versus net profit of $120.9 million on revenue of $196.0 million for the same period last year. The company also announced cash distribution of $4.00 per common unit payable May 30, 2012 for the quarter ended March 31, to holders of record as of May 15, 2012.
PPG Industries, Inc. (PPG) is a global supplier engages in the manufacture and supplies protective and decorative coatings. The company has a solid performance history and is the leader its industry. PPG is seeing strong sales of autos and trucks in recent months and the trends seem to be improving, PPG may benefit further from increased production of not just autos, but all types of manufacturing that requires their coatings.
PPG stock price has accumulatively added 26.57% this year. Over the past 52 weeks, PPG shares fluctuated between $66.43 per share and $106.75 per share, and currently reports at $105.67, close to the ceiling of the 52-week range and has exceeded the S&P 500′s performance by 17.17% this year.
The company currently commands a market cap of $15.41 billion and have a PEG ratio of 1.05. The company pays a dividend yield of 2.26% and will pay a quarterly dividend of $0.59 on June 12, 2012.
Airgas, Inc. (ARG) is the third on list of the best stocks in the basic materials sector this year. The company through its subsidiaries, engages into distributing industrial, medical, and specialty gases in the United States. ARG has gained 17.46% this year and now settles at $91.71, close to its 52-week high of $92.40.
Airgas has released a favorable financial results for the fiscal year 2012. Airgas posted adjusted earnings of $1.11 and $4.11 per share for the fiscal 2012 fourth-quarter and full year, respectively, better-tha-expected. Revenues increased by 40.2% to $88 million in this quarter and 12% to $4.75 billion, respectively. The company predicts the fiscal 2013 first quarter adjusted earnings per share would increase by 12%-16% to $1.12-$1.16 versus $1 a year ago. Adjusted earnings for the full fiscal 2013 would increase by 14% to 18% $4.70 to $4.85 versus $4.11 for the previous year.
Airgas’s board of directors announced to increase the fiscal 2012 first quarter dividend on the common stock by 25%, from $0.32 per share to $0.40 per share, payable on June 29, 2012, to shareholders as of June 15, 2012.
Basic materials sector stocks has the ability for a great payoff if the market keeps warming. With many positives and few negatives, these three best stocks mentioned above could be great additions to your portfolio as long as getting in at a decent price, they will enhance your gains resist volatilities of the market.