Is Northern Technologies International (NTIC) Outperforming Other Basic Materials Stocks This Year?

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Northern Technologies (NTIC) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Northern Technologies is a member of our Basic Materials group, which includes 241 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Northern Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for NTIC's full-year earnings has moved 4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, NTIC has gained about 57.1% so far this year. In comparison, Basic Materials companies have returned an average of -0.3%. This means that Northern Technologies is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Centerra Gold Inc. (CGAU). The stock is up 17.6% year-to-date.

The consensus estimate for Centerra Gold Inc.'s current year EPS has increased 131% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Northern Technologies belongs to the Chemical - Diversified industry, a group that includes 29 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, this group has gained an average of 0.3% so far this year, meaning that NTIC is performing better in terms of year-to-date returns.

In contrast, Centerra Gold Inc. falls under the Mining - Gold industry. Currently, this industry has 40 stocks and is ranked #11. Since the beginning of the year, the industry has moved +14.9%.

Northern Technologies and Centerra Gold 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.

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