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Is Albemarle (ALB) Stock Outpacing Its Basic Materials Peers 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 Albemarle (ALB - 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.

Albemarle is one of 243 individual stocks in the Basic Materials sector. Collectively, these companies sit at #16 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for ALB's full-year earnings has moved 51.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ALB has moved about 9.3% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of -15%. This means that Albemarle is performing better than its sector in terms of year-to-date returns.

Another Basic Materials stock, which has outperformed the sector so far this year, is Teck Resources Ltd (TECK - Free Report) . The stock has returned 14.5% year-to-date.

The consensus estimate for Teck Resources Ltd's current year EPS has increased 0.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Albemarle is a member of the Chemical - Diversified industry, which includes 35 individual companies and currently sits at #237 in the Zacks Industry Rank. Stocks in this group have lost about 16.7% so far this year, so ALB is performing better this group in terms of year-to-date returns.

Teck Resources Ltd, however, belongs to the Mining - Miscellaneous industry. Currently, this 50-stock industry is ranked #72. The industry has moved -15.1% so far this year.

Investors interested in the Basic Materials sector may want to keep a close eye on Albemarle and Teck Resources Ltd as they attempt to continue their solid performance.


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