Is Methanex (MEOH) Stock Outpacing Its Basic Materials Peers This Year?

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Methanex (MEOH) 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.

Methanex is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Methanex is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for MEOH's full-year earnings has moved 16.5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, MEOH has moved about 25.9% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have lost about 0.9% on average. As we can see, Methanex is performing better than its sector in the calendar year.

Another Basic Materials stock, which has outperformed the sector so far this year, is United States Steel (X). The stock has returned 0.8% year-to-date.

In United States Steel's case, the consensus EPS estimate for the current year increased 16.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Methanex is a member of the Chemical - Diversified industry, which includes 38 individual companies and currently sits at #87 in the Zacks Industry Rank. On average, stocks in this group have lost 5.4% this year, meaning that MEOH is performing better in terms of year-to-date returns.

In contrast, United States Steel falls under the Steel - Producers industry. Currently, this industry has 24 stocks and is ranked #19. Since the beginning of the year, the industry has moved +8.6%.

Investors interested in the Basic Materials sector may want to keep a close eye on Methanex and United States Steel as they attempt to continue their solid performance.

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