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 Givaudan SA (GVDNY) 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.
Givaudan SA is a member of the Basic Materials sector. This group includes 235 individual stocks and currently holds a Zacks Sector Rank of #9. 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. Givaudan SA is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for GVDNY's full-year earnings has moved 2.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, GVDNY has moved about 8.1% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 0.1%. This means that Givaudan SA is outperforming the sector as a whole this year.
Intrepid Potash (IPI) 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%.
Over the past three months, Intrepid Potash's consensus EPS estimate for the current year has increased 50%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Givaudan SA is a member of the Chemical - Specialty industry, which includes 33 individual companies and currently sits at #138 in the Zacks Industry Rank. On average, stocks in this group have lost 12.6% this year, meaning that GVDNY is performing better in terms of year-to-date returns.
In contrast, Intrepid Potash falls under the Fertilizers industry. Currently, this industry has 8 stocks and is ranked #43. Since the beginning of the year, the industry has moved -15.5%.
Investors with an interest in Basic Materials stocks should continue to track Givaudan SA and Intrepid Potash. These stocks will be looking to continue their solid performance.
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