Is Element Solutions (ESI) Stock Outpacing Its Basic Materials Peers This Year?

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Element Solutions (ESI) 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.

Element Solutions is one of 254 individual stocks in the Basic Materials sector. Collectively, these companies sit at #3 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. Element Solutions is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ESI's full-year earnings has moved 3% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ESI has moved about 41.8% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 22.5% on a year-to-date basis. This means that Element Solutions is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Fortuna Mining (FSM), has outperformed the sector so far this year. The stock's year-to-date return is 25.1%.

Over the past three months, Fortuna Mining's consensus EPS estimate for the current year has increased 48.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Element Solutions is a member of the Chemical - Specialty industry, which includes 43 individual companies and currently sits at #188 in the Zacks Industry Rank. On average, this group has gained an average of 15.5% so far this year, meaning that ESI is performing better in terms of year-to-date returns.

On the other hand, Fortuna Mining belongs to the Mining - Miscellaneous industry. This 73-stock industry is currently ranked #50. The industry has moved +24.5% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Element Solutions and Fortuna Mining 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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