For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Linde (LIN) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Linde is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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).
The Zacks Consensus Estimate for LIN's full-year earnings has moved 3.8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that LIN has returned about 13.6% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 1.2% on a year-to-date basis. This means that Linde is performing better than its sector in terms of year-to-date returns.
PPG Industries (PPG) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 10.5%.
Over the past three months, PPG Industries' consensus EPS estimate for the current year has increased 11.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Linde is a member of the Chemical - Specialty industry, which includes 34 individual companies and currently sits at #185 in the Zacks Industry Rank. On average, stocks in this group have gained 5.4% this year, meaning that LIN is performing better in terms of year-to-date returns. PPG Industries is also part of the same industry.
Investors with an interest in Basic Materials stocks should continue to track Linde and PPG Industries. These stocks will be looking to continue their solid performance.
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