Is Ingevity (NGVT) Stock Outpacing Its Basic Materials Peers This Year?
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Ingevity (NGVT) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Ingevity is one of 279 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 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. Ingevity is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for NGVT's full-year earnings has moved 6.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, NGVT has gained about 15.3% so far this year. Meanwhile, the Basic Materials sector has returned an average of 14.6% on a year-to-date basis. This means that Ingevity is performing better than its sector in terms of year-to-date returns.
Solstice Advanced Materials (SOLS) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 18.9%.
Over the past three months, Solstice Advanced Materials' consensus EPS estimate for the current year has increased 9.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Ingevity belongs to the Chemical - Specialty industry, which includes 46 individual stocks and currently sits at #158 in the Zacks Industry Rank. On average, this group has gained an average of 5.5% so far this year, meaning that NGVT is performing better in terms of year-to-date returns. Solstice Advanced Materials is also part of the same industry.
Investors interested in the Basic Materials sector may want to keep a close eye on Ingevity and Solstice Advanced Materials as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
