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Is PPG Industries (PPG) Outperforming Other Basic Materials Stocks This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is PPG Industries (PPG - Free Report) 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.

PPG Industries is a member of our Basic Materials group, which includes 235 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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

Over the past 90 days, the Zacks Consensus Estimate for PPG's full-year earnings has moved 14.17% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, PPG has moved about 8.55% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 17.54% on a year-to-date basis. As we can see, PPG Industries is performing better than its sector in the calendar year.

Breaking things down more, PPG is a member of the Chemical - Diversified industry, which includes 41 individual companies and currently sits at #121 in the Zacks Industry Rank. Stocks in this group have gained about 9.95% so far this year, so PPG is slightly underperforming its industry this group in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to PPG as it looks to continue its solid performance.


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