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 Compass Minerals (CMP) 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.
Compass Minerals is a member of our Basic Materials group, which includes 248 different companies and currently sits at #12 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. Compass Minerals is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CMP's full-year earnings has moved 27% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CMP has returned 31.6% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 18.9% on average. This shows that Compass Minerals is outperforming its peers so far this year.
One other Basic Materials stock that has outperformed the sector so far this year is NWPX Infrastructure (NWPX). The stock is up 28% year-to-date.
The consensus estimate for NWPX Infrastructure's current year EPS has increased 10.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Compass Minerals belongs to the Chemical - Diversified industry, a group that includes 29 individual companies and currently sits at #220 in the Zacks Industry Rank. This group has gained an average of 36.2% so far this year, so CMP is slightly underperforming its industry in this area.
On the other hand, NWPX Infrastructure belongs to the Steel - Speciality industry. This 6-stock industry is currently ranked #166. The industry has moved +27.8% year to date.
Investors with an interest in Basic Materials stocks should continue to track Compass Minerals and NWPX Infrastructure. These stocks will be looking to continue their solid performance.
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Compass Minerals International, Inc. (CMP): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).