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Are Basic Materials Stocks Lagging Cabot (CBT) 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. Has Cabot (CBT - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Cabot is one of 243 individual stocks in the Basic Materials sector. Collectively, these companies sit at #3 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 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. Cabot is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for CBT's full-year earnings has moved 6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CBT has returned about 15.1% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of -11.7% on a year-to-date basis. This means that Cabot is performing better than its sector in terms of year-to-date returns.

Another stock in the Basic Materials sector, Alpha Metallurgical (AMR - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 104.5%.

Over the past three months, Alpha Metallurgical's consensus EPS estimate for the current year has increased 20.8%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Cabot belongs to the Chemical - Diversified industry, a group that includes 36 individual stocks and currently sits at #67 in the Zacks Industry Rank. On average, stocks in this group have lost 15.8% this year, meaning that CBT is performing better in terms of year-to-date returns.

In contrast, Alpha Metallurgical falls under the Mining - Miscellaneous industry. Currently, this industry has 47 stocks and is ranked #107. Since the beginning of the year, the industry has moved -6.6%.

Cabot and Alpha Metallurgical 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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Alpha Metallurgical Resources, Inc. (AMR) - free report >>

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