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Is AkzoNobel (AKZOY) Outperforming Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Akzo Nobel NV (AKZOY - 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? 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.

Akzo Nobel NV is a member of our Basic Materials group, which includes 233 different companies and currently sits at #10 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. Akzo Nobel NV is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for AKZOY's full-year earnings has moved 9.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that AKZOY has returned about 15.8% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 10%. This shows that Akzo Nobel NV is outperforming its peers so far this year.

Compass Minerals (CMP - 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 70.7%.

The consensus estimate for Compass Minerals' current year EPS has increased 39.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Akzo Nobel NV belongs to the Chemical - Diversified industry, a group that includes 28 individual stocks and currently sits at #198 in the Zacks Industry Rank. Stocks in this group have lost about 13.9% so far this year, so AKZOY is performing better this group in terms of year-to-date returns. Compass Minerals is also part of the same industry.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Akzo Nobel NV and Compass Minerals as they could maintain their solid performance.


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