Looking for the best growth stocks in 2026 to diversify your portfolio? The Materials Improvers portfolio is designed as a sector ETF alternative, focusing on high-potential companies in the basic materials and industrials sectors. With a strategy centered on scoring undervalued stocks with strong upside for Q1 2026, this portfolio targets capital appreciation by investing in firms poised to benefit from rising demand for raw materials and industrial innovation. Boasting 10 carefully selected holdings, it offers a Tradestie Score of 57.82/100, reflecting a balanced yet opportunistic approach to value investing in a dynamic market.
The stock selection includes industry leaders like Dupont De Nemours Inc (DD), China Natural Resources Inc (CHNR), and Standard Lithium Ltd (SLI), each holding a significant 11.7% of the portfolio. Other notable picks such as Coeur Mining Inc (CDE), Cleveland-Cliffs Inc (CLF), and Air Products and Chemicals Inc (APD) tap into the growing need for sustainable resources and industrial solutions, making them some of the best basic materials stocks to buy based on current valuations. Companies like Allegheny Technologies Incorporated (ATI) and Armstrong World Industries Inc (AWI) add industrials exposure, capitalizing on infrastructure trends projected for the 2026 market outlook. These firms are chosen for their strong fundamentals and potential to outperform in a commodity-driven recovery. However, investors should note the portfolio’s concentrated 82% allocation to basic materials, which introduces sector-specific risks tied to commodity price volatility and global economic shifts. Market risks, including inflation pressures and supply chain disruptions, could also impact returns. With a diversification score of 50.7/100, this isn’t a low-risk play but rather a targeted bet on sector growth for savvy investors.