The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Linde (LIN) 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.
Linde is a member of the Basic Materials sector. This group includes 236 individual stocks and currently holds a Zacks Sector Rank of #13. 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 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. Linde is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for LIN's full-year earnings has moved 4.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that LIN has returned about 11.1% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 7.8%. This means that Linde is outperforming the sector as a whole this year.
Another stock in the Basic Materials sector, Piedmont Lithium Inc. (PLL), has outperformed the sector so far this year. The stock's year-to-date return is 33.4%.
In Piedmont Lithium Inc.'s case, the consensus EPS estimate for the current year increased 30.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Linde belongs to the Chemical - Specialty industry, a group that includes 34 individual stocks and currently sits at #200 in the Zacks Industry Rank. On average, this group has gained an average of 5.3% so far this year, meaning that LIN is performing better in terms of year-to-date returns.
Piedmont Lithium Inc. however, belongs to the Mining - Miscellaneous industry. Currently, this 50-stock industry is ranked #161. The industry has moved +3% so far this year.
Linde and Piedmont Lithium Inc. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
