ASX materials stocks have been a shining light in what has otherwise been a turbulent 2026 for the ASX.Â
The S&P/ASX 200 Materials Index (ASX: XMJ) is up 9% year to date.Â
This has significantly outpaced the S&P/ASX 200 Index (ASX: XJO), which is almost even with where it began the year.
ASX materials stocks have outperformed in 2026 largely due to momentum from a strong 2025, elevated and sometimes rising commodity prices (especially metals tied to electrification), and investor rotation into inflation-resistant “real asset” sectors.
One such ASX materials stock that has enjoyed this sector outperformance is Nickel Industries Ltd (ASX: NIC).
This ASX materials stock is a producer of nickel pig iron , a key ingredient in stainless steel. It is also engaged in exploring, mining, acquiring, and developing nickel projects globally.
Its share price is up 18% year to date and almost 80% over the last 12 months.
More upside to come for this ASX materials stock
For those worried they missed the boat on this ASX materials stock, the team at Bell Potter are predicting more upside.
In a recent report, the broker provided updated guidance following the company’s quarterly activities report.
The broker said NIC’s March 2026 quarter was broadly in line with expectations.
It produced about 30,300 tonnes of nickel in NPI, slightly below forecasts, with attributable production also a bit under expectations.
Costs were close to forecasts at around US$10,450 per tonne, but rose 4% from the previous quarter due to lower ore grades and higher electricity prices.
Additionally, the Hengjaya mine recovered strongly after earlier delays, selling about 3.0 million tonnes of ore, slightly above expectations.
Overall, NIC reported strong earnings, with EBITDA of about US$136 million – well above forecasts and up sharply from the previous quarter.
Our key takeaway is the nickel price leverage demonstrated with this result. RKEF operations stood out, where EBITDA was up 145% from US$35m to US$86m, driven almost entirely by NPI pricing (up 19%) rather than volume (down 4%).
Buy recommendation unchanged
Based on this guidance, Bell Potter has retained its buy recommendation on this ASX materials stock.
The broker has also reaffirmed its price target of $1.450.
From last week’s closing price, this indicates an upside potential of 40%.
NIC offers nickel price leverage and diversified margin exposure across an integrated value chain. Retain Buy, our $1.45/sh Target Price is unchanged.
The post This ASX materials stock could be set to boom 40% or more appeared first on The Motley Fool Australia.
Should you invest $1,000 in Nickel Industries right now?
Before you buy Nickel Industries shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nickel Industries wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Here are the top 10 ASX 200 shares today
- Nickel Industries reports March quarter earnings
- 2 ASX mining shares to buy with $2,000
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.