The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Axalta Coating Systems (AXTA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Axalta Coating Systems is a member of our Basic Materials group, which includes 233 different companies and currently sits at #15 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Axalta Coating Systems is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AXTA's full-year earnings has moved 5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, AXTA has returned 8.2% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 7.9% on average. As we can see, Axalta Coating Systems is performing better than its sector in the calendar year.
Another stock in the Basic Materials sector, Ingevity (NGVT), has outperformed the sector so far this year. The stock's year-to-date return is 9.5%.
Over the past three months, Ingevity's consensus EPS estimate for the current year has increased 29%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Axalta Coating Systems belongs to the Chemical - Specialty industry, which includes 33 individual stocks and currently sits at #201 in the Zacks Industry Rank. This group has gained an average of 6.1% so far this year, so AXTA is performing better in this area. Ingevity is also part of the same industry.
Investors with an interest in Basic Materials stocks should continue to track Axalta Coating Systems and Ingevity. These stocks will be looking to continue their solid performance.
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Ingevity Corporation (NGVT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
