Are Basic Materials Stocks Lagging BASF (BASFY) This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is BASF SE (BASFY) 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.
BASF SE is a member of our Basic Materials group, which includes 238 different companies and currently sits at #7 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. BASF SE is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BASFY's full-year earnings has moved 2.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, BASFY has returned 17.4% so far this year. In comparison, Basic Materials companies have returned an average of 4.9%. As we can see, BASF SE is performing better than its sector in the calendar year.
Another Basic Materials stock, which has outperformed the sector so far this year, is South32 Ltd. (SOUHY). The stock has returned 24.1% year-to-date.
Over the past three months, South32 Ltd.'s consensus EPS estimate for the current year has increased 16.2%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, BASF SE belongs to the Chemical - Diversified industry, which includes 34 individual stocks and currently sits at #182 in the Zacks Industry Rank. On average, stocks in this group have lost 0.6% this year, meaning that BASFY is performing better in terms of year-to-date returns.
On the other hand, South32 Ltd. belongs to the Mining - Miscellaneous industry. This 49-stock industry is currently ranked #92. The industry has moved +12.2% year to date.
BASF SE and South32 Ltd. 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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