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Is Mercer International (MERC) Outperforming 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. Mercer International (MERC - Free Report) 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.

Mercer International is a member of the Basic Materials sector. This group includes 242 individual stocks and currently holds a Zacks Sector Rank of #13. 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 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 21.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, MERC has returned 35.6% so far this year. At the same time, Basic Materials stocks have lost an average of 6.7%. This shows that Mercer International is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Ingevity (NGVT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 1.9%.

The consensus estimate for Ingevity's current year EPS has increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Mercer International belongs to the Paper and Related Products industry, which includes 13 individual stocks and currently sits at #49 in the Zacks Industry Rank. On average, this group has lost an average of 7.8% so far this year, meaning that MERC is performing better in terms of year-to-date returns.

Ingevity, however, belongs to the Chemical - Specialty industry. Currently, this 35-stock industry is ranked #88. The industry has moved -18.3% so far this year.

Mercer International and Ingevity 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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