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? 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.

Intrepid Potash is one of 279 individual stocks in the Basic Materials sector. Collectively, these companies sit at #15 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. Intrepid Potash is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for IPI's full-year earnings has moved 14.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, IPI has moved about 48.8% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 20.6% on a year-to-date basis. This shows that Intrepid Potash is outperforming its peers so far this year.

Another Basic Materials stock, which has outperformed the sector so far this year, is Kronos Worldwide (KRO). The stock has returned 97.7% year-to-date.

Over the past three months, Kronos Worldwide's consensus EPS estimate for the current year has increased 204.8%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Intrepid Potash is a member of the Fertilizers industry, which includes 6 individual companies and currently sits at #51 in the Zacks Industry Rank. Stocks in this group have gained about 33.6% so far this year, so IPI is performing better this group in terms of year-to-date returns.

Kronos Worldwide, however, belongs to the Chemical - Diversified industry. Currently, this 31-stock industry is ranked #98. The industry has moved +22% so far this year.

Investors with an interest in Basic Materials stocks should continue to track Intrepid Potash and Kronos Worldwide. These stocks will be looking to continue their solid performance.

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

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