Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Sensient Technologies (SXT) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
Sensient Technologies is a member of the Basic Materials sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #11. 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 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. Sensient Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for SXT's full-year earnings has moved 5.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, SXT has moved about 21.3% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 13% on average. This shows that Sensient Technologies is outperforming its peers so far this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Yara International ASA (YARIY). The stock has returned 42% year-to-date.
In Yara International ASA's case, the consensus EPS estimate for the current year increased 40.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Sensient Technologies belongs to the Chemical - Specialty industry, a group that includes 44 individual companies and currently sits at #92 in the Zacks Industry Rank. This group has gained an average of 9.1% so far this year, so SXT is performing better in this area.
On the other hand, Yara International ASA belongs to the Fertilizers industry. This 6-stock industry is currently ranked #30. The industry has moved +21.7% year to date.
Investors with an interest in Basic Materials stocks should continue to track Sensient Technologies and Yara International ASA. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
