For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Axalta Coating Systems (AXTA) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Axalta Coating Systems is a member of the Basic Materials sector. This group includes 275 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Axalta Coating Systems is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AXTA's full-year earnings has moved 0.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that AXTA has returned about 9.7% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of 8.1%. As we can see, Axalta Coating Systems is performing better than its sector in the calendar year.
Carpenter Technology (CRS) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 78%.
For Carpenter Technology, the consensus EPS estimate for the current year has increased 6.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Axalta Coating Systems is a member of the Chemical - Specialty industry, which includes 46 individual companies and currently sits at #92 in the Zacks Industry Rank. This group has gained an average of 13% so far this year, so AXTA is slightly underperforming its industry in this area.
On the other hand, Carpenter Technology belongs to the Steel - Speciality industry. This 6-stock industry is currently ranked #4. The industry has moved +66.8% year to date.
Axalta Coating Systems and Carpenter Technology could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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