For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Linde (LIN) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Linde is one of 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #13 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Linde is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for LIN's full-year earnings has moved 6.3% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that LIN has returned about 11.4% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 2.7% on a year-to-date basis. As we can see, Linde is performing better than its sector in the calendar year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Piedmont Lithium Inc. (PLL). The stock has returned 21% year-to-date.
In Piedmont Lithium Inc.'s case, the consensus EPS estimate for the current year increased 143.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Linde belongs to the Chemical - Specialty industry, a group that includes 34 individual stocks and currently sits at #169 in the Zacks Industry Rank. On average, stocks in this group have gained 5.2% this year, meaning that LIN is performing better in terms of year-to-date returns.
Piedmont Lithium Inc. however, belongs to the Mining - Miscellaneous industry. Currently, this 50-stock industry is ranked #175. The industry has moved -3.6% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Linde and Piedmont Lithium Inc. as they could maintain their solid performance.
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