Are Basic Materials Stocks Lagging PPG Industries (PPG) 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. PPG Industries (PPG) 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.
PPG Industries 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 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 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. PPG Industries is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for PPG's full-year earnings has moved 0.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, PPG has gained about 10.8% so far this year. At the same time, Basic Materials stocks have gained an average of 8.3%. This means that PPG Industries is performing better than its sector in terms of year-to-date returns.
Another Basic Materials stock, which has outperformed the sector so far this year, is Ryerson Holding (RYI). The stock has returned 23.6% year-to-date.
For Ryerson Holding, the consensus EPS estimate for the current year has increased 32.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, PPG Industries belongs to the Chemical - Specialty industry, a group that includes 34 individual stocks and currently sits at #203 in the Zacks Industry Rank. On average, stocks in this group have gained 5.4% this year, meaning that PPG is performing better in terms of year-to-date returns.
On the other hand, Ryerson Holding belongs to the Steel - Producers industry. This 24-stock industry is currently ranked #15. The industry has moved +18.7% year to date.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to PPG Industries and Ryerson Holding as they could maintain their solid performance.
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PPG Industries, Inc. (PPG) : Free Stock Analysis Report
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