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Is International Paper (IP) Stock Outpacing Its Basic Materials Peers This Year?

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Investors focused on the Basic Materials space have likely heard of International Paper (IP - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of IP and the rest of the Basic Materials group's stocks.

International Paper is a member of the Basic Materials sector. This group includes 235 individual stocks and currently holds a Zacks Sector Rank of #12. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. IP is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for IP's full-year earnings has moved 16.71% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, IP has returned 8.06% so far this year. At the same time, Basic Materials stocks have gained an average of 20.10%. This means that International Paper is outperforming the sector as a whole this year.

Looking more specifically, IP belongs to the Paper and Related Products industry, which includes 14 individual stocks and currently sits at #52 in the Zacks Industry Rank. On average, stocks in this group have gained 9.12% this year, meaning that IP is slightly underperforming its industry in terms of year-to-date returns.

IP 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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