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Has CSW Industrials (CSWI) Outpaced Other Basic Materials Stocks This Year?
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. CSW Industrials (CSWI - 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.
CSW Industrials is a member of our Basic Materials group, which includes 239 different companies and currently sits at #16 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 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. CSW Industrials is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CSWI's full-year earnings has moved 21.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CSWI has returned about 8.8% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -6.5%. This shows that CSW Industrials is outperforming its peers so far this year.
Mercer International (MERC - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 35.5%.
In Mercer International's case, the consensus EPS estimate for the current year increased 21.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, CSW Industrials belongs to the Chemical - Specialty industry, a group that includes 34 individual stocks and currently sits at #87 in the Zacks Industry Rank. On average, stocks in this group have lost 19.3% this year, meaning that CSWI is performing better in terms of year-to-date returns.
Mercer International, however, belongs to the Paper and Related Products industry. Currently, this 13-stock industry is ranked #54. The industry has moved -10.2% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to CSW Industrials and Mercer International as they could maintain their solid performance.