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Has Innospec (IOSP) Outpaced Other Basic Materials Stocks This Year?

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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 Innospec (IOSP - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Innospec is a member of the Basic Materials sector. This group includes 241 individual stocks and currently holds a Zacks Sector Rank of #4. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Innospec is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for IOSP's full-year earnings has moved 2.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that IOSP has returned about 14% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -0.8%. This shows that Innospec is outperforming its peers so far this year.

Another Basic Materials stock, which has outperformed the sector so far this year, is Huntsman (HUN - Free Report) . The stock has returned 1.9% year-to-date.

For Huntsman, the consensus EPS estimate for the current year has increased 10.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Innospec is a member of the Chemical - Diversified industry, which includes 38 individual companies and currently sits at #146 in the Zacks Industry Rank. Stocks in this group have lost about 6.7% so far this year, so IOSP is performing better this group in terms of year-to-date returns. Huntsman is also part of the same industry.

Innospec and Huntsman could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


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