Yahoo Finance Are Basic Materials Stocks Lagging Linde PLC (LIN) 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. Linde (LIN) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Linde is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. Linde is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for LIN's full-year earnings has moved 0.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, LIN has moved about 7.4% on a year-to-date basis. At the same time, Basic Materials stocks have lost an average of 3.6%. This means that Linde is outperforming the sector as a whole this year.
Another stock in the Basic Materials sector, Steel Dynamics (STLD), has outperformed the sector so far this year. The stock's year-to-date return is 10.2%.
For Steel Dynamics, the consensus EPS estimate for the current year has increased 10.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Linde belongs to the Chemical - Specialty industry, a group that includes 33 individual companies and currently sits at #53 in the Zacks Industry Rank. Stocks in this group have lost about 20.5% so far this year, so LIN is performing better this group in terms of year-to-date returns.
In contrast, Steel Dynamics falls under the Steel - Producers industry. Currently, this industry has 20 stocks and is ranked #171. Since the beginning of the year, the industry has moved -10.4%.
Linde and Steel Dynamics 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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Linde PLC (LIN) : Free Stock Analysis Report
Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
