For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Verso (VRS - Free Report) one of those stocks right now? 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.
Verso is a member of our Basic Materials group, which includes 250 different companies and currently sits at #14 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. VRS is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for VRS's full-year earnings has moved 75.62% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, VRS has returned 42.69% so far this year. At the same time, Basic Materials stocks have lost an average of 14.51%. As we can see, Verso is performing better than its sector in the calendar year.
Looking more specifically, VRS belongs to the Paper and Related Products industry, which includes 18 individual stocks and currently sits at #219 in the Zacks Industry Rank. This group has lost an average of 12.07% so far this year, so VRS is performing better in this area.
Investors in the Basic Materials sector will want to keep a close eye on VRS as it attempts to continue its solid performance.