Are Basic Materials Stocks Lagging Innospec (IOSP) 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. Is Innospec (IOSP) one of those stocks right now? 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.
Innospec is a member of our Basic Materials group, which includes 237 different companies and currently sits at #12 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 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. Innospec is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for IOSP's full-year earnings has moved 1.8% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, IOSP has returned 4.6% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 0.8% on average. This means that Innospec is performing better than its sector in terms of year-to-date returns.
Kronos Worldwide (KRO) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 18.7%.
For Kronos Worldwide, the consensus EPS estimate for the current year has increased 76.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Innospec belongs to the Chemical - Diversified industry, which includes 29 individual stocks and currently sits at #181 in the Zacks Industry Rank. This group has lost an average of 0.9% so far this year, so IOSP is performing better in this area. Kronos Worldwide is also part of the same industry.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Innospec and Kronos Worldwide as they could maintain their solid performance.
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Innospec Inc. (IOSP) : Free Stock Analysis Report
Kronos Worldwide Inc (KRO) : Free Stock Analysis Report
