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? 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.
BASF SE is a member of the Basic Materials sector. This group includes 246 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. BASF SE is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for BASFY’s full-year earnings has moved 5.5% 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 8.7% so far this year. At the same time, Basic Materials stocks have gained an average of 7.3%. This means that BASF SE is outperforming the sector as a whole this year.
Another stock in the Basic Materials sector, Teck Resources Ltd (TECK), has outperformed the sector so far this year. The stock’s year-to-date return is 10.7%.
Over the past three months, Teck Resources Ltd’s consensus EPS estimate for the current year has increased 26.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, BASF SE is a member of the Chemical – Diversified industry, which includes 40 individual companies and currently sits at #98 in the Zacks Industry Rank. Stocks in this group have gained about 12.4% so far this year, so BASFY is slightly underperforming its industry this group in terms of year-to-date returns.
On the other hand, Teck Resources Ltd belongs to the Mining – Miscellaneous industry. This 51-stock industry is currently ranked #162. The industry has moved +9.3% year to date.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to BASF SE and Teck Resources Ltd as they could maintain their solid performance.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report