Are Basic Materials Stocks Lagging Intrepid Potash (IPI) This Year?

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Intrepid Potash (IPI) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Intrepid Potash is a member of the Basic Materials sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #7. 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Intrepid Potash is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for IPI's full-year earnings has moved 42.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, IPI has moved about 29.3% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 16.8% on average. As we can see, Intrepid Potash is performing better than its sector in the calendar year.

Another stock in the Basic Materials sector, Nucor (NUE), has outperformed the sector so far this year. The stock's year-to-date return is 59%.

Over the past three months, Nucor's consensus EPS estimate for the current year has increased 32.8%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Intrepid Potash belongs to the Fertilizers industry, a group that includes 6 individual stocks and currently sits at #83 in the Zacks Industry Rank. On average, this group has gained an average of 11% so far this year, meaning that IPI is performing better in terms of year-to-date returns.

In contrast, Nucor falls under the Steel - Producers industry. Currently, this industry has 17 stocks and is ranked #47. Since the beginning of the year, the industry has moved +44.9%.

Investors interested in the Basic Materials sector may want to keep a close eye on Intrepid Potash and Nucor as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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