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Is Innospec (IOSP) 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 Innospec (IOSP - Free Report) been one of those stocks this year? 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.

Innospec is a member of our Basic Materials group, which includes 242 different companies and currently sits at #16 in the Zacks Sector Rank. 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. Innospec is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for IOSP's full-year earnings has moved 5.3% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, IOSP has gained about 23% so far this year. At the same time, Basic Materials stocks have lost an average of 4.2%. This means that Innospec is performing better than its sector in terms of year-to-date returns.

Commercial Metals (CMC - 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 30.7%.

In Commercial Metals' case, the consensus EPS estimate for the current year increased 3.8% 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 34 individual companies and currently sits at #224 in the Zacks Industry Rank. On average, stocks in this group have lost 3.1% this year, meaning that IOSP is performing better in terms of year-to-date returns.

Commercial Metals, however, belongs to the Steel - Producers industry. Currently, this 24-stock industry is ranked #210. The industry has moved +2.4% so far this year.

Innospec and Commercial Metals 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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