For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has BASF SE (BASFY) been one of those stocks this year? 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.
BASF SE is a member of our Basic Materials group, which includes 248 different companies and currently sits at #9 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. BASF SE is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for BASFY's full-year earnings has moved 13.4% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, BASFY has returned 16% so far this year. Meanwhile, the Basic Materials sector has returned an average of 13.6% on a year-to-date basis. As we can see, BASF SE is performing better than its sector in the calendar year.
One other Basic Materials stock that has outperformed the sector so far this year is Nexa Resources S.A. (NEXA). The stock is up 63.5% year-to-date.
In Nexa Resources S.A.'s case, the consensus EPS estimate for the current year increased 80% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, BASF SE belongs to the Chemical - Diversified industry, a group that includes 29 individual stocks and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 28.2% this year, meaning that BASFY is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Nexa Resources S.A. belongs to the Mining - Miscellaneous industry. This 72-stock industry is currently ranked #185. The industry has moved +23.7% year to date.
Investors interested in the Basic Materials sector may want to keep a close eye on BASF SE and Nexa Resources S.A. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).