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Is Perimeter Solutions, SA (PRM) 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. Perimeter Solutions, SA (PRM - 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.

Perimeter Solutions, SA is one of 238 companies in the Basic Materials group. The Basic Materials group currently sits at #13 within 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Perimeter Solutions, SA is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for PRM's full-year earnings has moved 67.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, PRM has returned 19.5% so far this year. Meanwhile, the Basic Materials sector has returned an average of 13.7% on a year-to-date basis. This means that Perimeter Solutions, SA is performing better than its sector in terms of year-to-date returns.

Silvercorp (SVM - 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 54.7%.

Over the past three months, Silvercorp's consensus EPS estimate for the current year has increased 5.1%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Perimeter Solutions, SA belongs to the Chemical - Specialty industry, a group that includes 37 individual companies and currently sits at #182 in the Zacks Industry Rank. On average, stocks in this group have gained 6.5% this year, meaning that PRM is performing better in terms of year-to-date returns.

On the other hand, Silvercorp belongs to the Mining - Miscellaneous industry. This 64-stock industry is currently ranked #158. The industry has moved +15.5% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Perimeter Solutions, SA and Silvercorp as they attempt to continue their solid performance.


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