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Is Mercer International (MERC) Stock Outpacing Its Basic Materials Peers 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 Mercer International (MERC - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Mercer International is one of 241 companies in the Basic Materials group. The Basic Materials group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Mercer International is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for MERC's full-year earnings has moved 69.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, MERC has gained about 27.3% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 1.7% on average. This shows that Mercer International is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Nutrien (NTR - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 23.5%.

The consensus estimate for Nutrien's current year EPS has increased 67.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Mercer International belongs to the Paper and Related Products industry, which includes 13 individual stocks and currently sits at #68 in the Zacks Industry Rank. On average, stocks in this group have lost 1% this year, meaning that MERC is performing better in terms of year-to-date returns.

On the other hand, Nutrien belongs to the Fertilizers industry. This 7-stock industry is currently ranked #1. The industry has moved +26% year to date.

Investors with an interest in Basic Materials stocks should continue to track Mercer International and Nutrien. These stocks will be looking to continue their solid performance.


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