Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Air Products and Chemicals (APD) 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? 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.
Air Products and Chemicals is a member of our Basic Materials group, which includes 248 different companies and currently sits at #8 in the Zacks Sector Rank. 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. Air Products and Chemicals is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for APD's full-year earnings has moved 1.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, APD has gained about 17.2% so far this year. In comparison, Basic Materials companies have returned an average of 13.7%. This means that Air Products and Chemicals is performing better than its sector in terms of year-to-date returns.
Another Basic Materials stock, which has outperformed the sector so far this year, is Lifezone Metals Limited (LZM). The stock has returned 19.2% year-to-date.
Over the past three months, Lifezone Metals Limited's consensus EPS estimate for the current year has increased 12.1%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Air Products and Chemicals is a member of the Chemical - Diversified industry, which includes 29 individual companies and currently sits at #94 in the Zacks Industry Rank. On average, this group has gained an average of 28.2% so far this year, meaning that APD is slightly underperforming its industry in terms of year-to-date returns.
Lifezone Metals Limited, however, belongs to the Mining - Miscellaneous industry. Currently, this 72-stock industry is ranked #166. The industry has moved +23.7% so far this year.
Investors interested in the Basic Materials sector may want to keep a close eye on Air Products and Chemicals and Lifezone Metals Limited as they attempt to continue their solid performance.
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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).