Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Air Products and Chemicals (APD) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Air Products and Chemicals is one of 248 individual stocks in the Basic Materials sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Air Products and Chemicals is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for APD's full-year earnings has moved 1.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, APD has gained about 14.6% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 10.6% on average. This means that Air Products and Chemicals is outperforming the sector as a whole this year.
One other Basic Materials stock that has outperformed the sector so far this year is Perimeter Solutions, SA (PRM). The stock is up 19% year-to-date.
Over the past three months, Perimeter Solutions, SA's consensus EPS estimate for the current year has increased 30.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Air Products and Chemicals belongs to the Chemical - Diversified industry, which includes 29 individual stocks and currently sits at #87 in the Zacks Industry Rank. This group has gained an average of 22.8% so far this year, so APD is slightly underperforming its industry in this area.
Perimeter Solutions, SA, however, belongs to the Chemical - Specialty industry. Currently, this 44-stock industry is ranked #104. The industry has moved +11.3% so far this year.
Air Products and Chemicals and Perimeter Solutions, SA could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).