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 Cabot (CBT) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Cabot is one of 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #15 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Cabot is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CBT's full-year earnings has moved 4.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, CBT has gained about 25.4% so far this year. In comparison, Basic Materials companies have returned an average of -2.3%. This shows that Cabot is outperforming its peers so far this year.
Element Solutions (ESI) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.4%.
In Element Solutions' case, the consensus EPS estimate for the current year increased 4.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Cabot is a member of the Chemical - Diversified industry, which includes 29 individual companies and currently sits at #225 in the Zacks Industry Rank. Stocks in this group have lost about 2.2% so far this year, so CBT is performing better this group in terms of year-to-date returns.
On the other hand, Element Solutions belongs to the Chemical - Specialty industry. This 33-stock industry is currently ranked #177. The industry has moved -17.1% year to date.
Cabot and Element Solutions could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>Cabot Corporation (CBT) : Free Stock Analysis Report
Element Solutions Inc. (ESI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
