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Is Albemarle (ALB) Outperforming Other Basic Materials Stocks This Year?

·2-min read

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Albemarle (ALB) 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.

Albemarle is a member of the Basic Materials sector. This group includes 241 individual stocks and currently holds a Zacks Sector Rank of #13. 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 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. Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ALB's full-year earnings has moved 92.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ALB has returned 20.5% so far this year. Meanwhile, the Basic Materials sector has returned an average of -5.2% on a year-to-date basis. This means that Albemarle is outperforming the sector as a whole this year.

The Andersons (ANDE) 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%.

For The Andersons, the consensus EPS estimate for the current year has increased 5.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Albemarle is a member of the Chemical - Diversified industry, which includes 35 individual companies and currently sits at #145 in the Zacks Industry Rank. On average, this group has lost an average of 4.8% so far this year, meaning that ALB is performing better in terms of year-to-date returns.

In contrast, The Andersons falls under the Agriculture - Products industry. Currently, this industry has 7 stocks and is ranked #66. Since the beginning of the year, the industry has moved +2.9%.

Investors interested in the Basic Materials sector may want to keep a close eye on Albemarle and The Andersons as they attempt to continue their solid performance.


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