The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has LyondellBasell (LYB) been one of those stocks this year? 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.
LyondellBasell is a member of the Basic Materials sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #10. 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. LyondellBasell is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for LYB's full-year earnings has moved 188.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, LYB has returned 70.3% so far this year. At the same time, Basic Materials stocks have gained an average of 21.4%. This means that LyondellBasell is outperforming the sector as a whole this year.
One other Basic Materials stock that has outperformed the sector so far this year is Methanex (MEOH). The stock is up 60% year-to-date.
For Methanex, the consensus EPS estimate for the current year has increased 39% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, LyondellBasell is a member of the Chemical - Diversified industry, which includes 29 individual companies and currently sits at #106 in the Zacks Industry Rank. On average, this group has gained an average of 37.1% so far this year, meaning that LYB is performing better in terms of year-to-date returns. Methanex is also part of the same industry.
Investors interested in the Basic Materials sector may want to keep a close eye on LyondellBasell and Methanex as they attempt to continue their solid performance.
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LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).