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Is Axalta Coating Systems (AXTA) Stock Outpacing Its Basic Materials Peers This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Axalta Coating Systems (AXTA - 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.

Axalta Coating Systems is a member of our Basic Materials group, which includes 247 different companies and currently sits at #12 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 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. AXTA is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for AXTA's full-year earnings has moved 3.45% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, AXTA has gained about 33.69% so far this year. Meanwhile, the Basic Materials sector has returned an average of 10.92% on a year-to-date basis. This means that Axalta Coating Systems is performing better than its sector in terms of year-to-date returns.

Breaking things down more, AXTA is a member of the Chemical - Specialty industry, which includes 38 individual companies and currently sits at #205 in the Zacks Industry Rank. This group has gained an average of 21.69% so far this year, so AXTA is performing better in this area.

AXTA will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.


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