The basic materials sector closely follows economic trends. As fundamental macro factors play such a crucial role in driving the group, one needs a keen eye to identity top investment opportunities among the many chemical, steel, mining and other stocks that make up the sector.
TipRanks recognized the 10 best analysts in the basic materials sector who delivered noteworthy returns and whose recommendations outperformed their peers.
TipRanks used its Experts Center tool to identify analysts with the highest success rates. In the process, it analyzed every recommendation by analysts in the basic materials sector over the past 10 years. Then, TipRanks’ algorithms calculated the statistical significance of each rating, analysts’ overall success rate and the average return.
Top 10 analysts from the basic materials sector
The image below shows the most successful Wall Street analysts from the basic materials sector.
1. Dan Payne — National Bank
Dan Payne tops the list. Payne has an overall success rate of 64%. His best rating was on Birchcliff Energy (TSE:BIR), an intermediate oil and natural gas company. His buy call on BIR stock from Oct. 6, 2020 to Oct. 6, 2021, generated a return of 373%.
2. Leo Mariani — Roth MKM
Leo Mariani is second on the list, with a success rate of 62%. Mariani’s top recommendation was Permian Resources (NYSE:PR), an oil and gas company. The analyst generated a whopping profit of 800% through his buy recommendation on PR stock from Oct. 20, 2020 to Oct. 20, 2021.
3. John Freeman — Raymond James
Raymond James analyst John Freeman ranks No. 3 on the list. Freeman has a success rate of 56%. His best recommendation was on Vital Energy (NYSE:VTLE), an oil and gas explorer in the Permian Basin. The analyst generated a return of 738% through a buy recommendation on the stock from Oct. 23, 2020 to Oct. 23, 2021.
4. Poe Fratt — Alliance Global Partners
Poe Fratt bags the fourth spot on the list. The analyst has a 54% overall success rate. Fratt’s best recommendation was on Gevo (NASDAQ:GEVO), a company focusing on renewable chemicals and advanced biofuels company. Based on his buy recommendation, the analyst generated a profit of 800% from Aug. 11, 2020 to Aug. 11, 2021.
5. Elvira Scotto — RBC Capital
Fifth-place analyst Elvira Scotto has a success rate of 64%. Scotto’s best recommendation was Crestwood Equity Partners (NYSE:CEQP), an owner of midstream assets that gathers, processes, stores and transports natural gas, natural gas liquids and crude oil. Based on this pick, the analyst delivered a profit of 437% from March 16, 2020 to March 16, 2021.
6. Vincent Lovaglio — Mizuho Securities
Taking the sixth position is Vincent Lovaglio. The analyst sports a 66% success rate. Lovaglio’s top recommendation was for Comstock Resources (NYSE:CRK), a natural gas producer. Through his buy call on CRK stock, the analyst generated a return of 270% from April 20, 2021 to April 20, 2022.
7. Scott Hanold — RBC Capital
RBC Capital analyst Scott Hanold is seventh on this list, with a success rate of 58%. The analyst’s best call was a buy on the shares of Matador Resources (NYSE:MTDR), and oil and gas explorer and producer. The recommendation generated a return of 389% from Oct. 1, 2020 to Oct. 1, 2021.
8. Michael Harvey — RBC Capital
In the eighth position is Michael Harvey of RBC Capital. Harvey has an overall success rate of 55%. The analyst’s top recommendation was for Seven Generations Energy, a Canada-based oil and gas company. Through this buy call, the analyst generated a return of 412.1% from March 16, 2020 to March 16, 2021. Seven Generations Energy merged with ARC Resources (TSE:ARX) in 2021.
9. Dalton Baretto — Canaccord Genuity
Dalton Baretto ranks ninth on the list. The analyst sports a 52% success rate. His top call was made on Capstone Copper (TSE:CS), a Canada-based copper producer. The buy recommendation generated a return of 800% from May 27, 2020 to May 27, 2021.
10. T J Schultz — RBC Capital
T J Schultz has the 10th spot on the list, with a success rate of 63%. The analyst’s best call has been a buy on shares of Targa Resources (NYSE:TRGP), a provider of midstream services. The recommendation generated a return of 243% from March 16, 2020 to March 16, 2021.
Bottom line
Retail investors can leverage TipRanks’ Experts Center tool to keep track of the recommendations of top analysts and make informed investment decisions.