For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. CSW Industrials (CSWI) 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? 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.
CSW Industrials is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #15 within the Zacks Sector Rank. 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 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. CSW Industrials is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CSWI's full-year earnings has moved 3.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, CSWI has moved about 40.8% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of -6.6%. This means that CSW Industrials 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 11.4%.
For Fortuna Mining, the consensus EPS estimate for the current year has increased 40.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CSW Industrials is a member of the Chemical - Specialty industry, which includes 33 individual companies and currently sits at #205 in the Zacks Industry Rank. This group has lost an average of 18.2% so far this year, so CSWI is performing better in this area.
Fortuna Mining, however, belongs to the Mining - Miscellaneous industry. Currently, this 59-stock industry is ranked #177. The industry has moved -19.9% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to CSW Industrials and Fortuna Mining as they could maintain their solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
