Is American Vanguard (AVD) Stock Outpacing Its Basic Materials Peers This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. American Vanguard (AVD) 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? 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.
American Vanguard is one of 240 individual stocks in the Basic Materials sector. Collectively, these companies sit at #10 in 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. American Vanguard is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AVD's full-year earnings has moved 13.2% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, AVD has moved about 15.7% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 1.3%. As we can see, American Vanguard is performing better than its sector in the calendar year.
Daqo New Energy (DQ) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 1.4%.
The consensus estimate for Daqo New Energy's current year EPS has increased 2.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, American Vanguard belongs to the Chemical - Specialty industry, a group that includes 33 individual stocks and currently sits at #152 in the Zacks Industry Rank. This group has lost an average of 17.2% so far this year, so AVD is performing better in this area. Daqo New Energy is also part of the same industry.
American Vanguard and Daqo New Energy 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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