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Is Albemarle (ALB) Outperforming Other Basic Materials Stocks 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. Has Albemarle (ALB - Free Report) been one of those stocks this year? 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.

Albemarle is one of 251 individual stocks in the Basic Materials sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ALB's full-year earnings has moved 11.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that ALB has returned about 74.5% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 7.1% on a year-to-date basis. This means that Albemarle is performing better than its sector in terms of year-to-date returns.

Commercial Metals (CMC - 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 60.9%.

The consensus estimate for Commercial Metals' current year EPS has increased 26.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Albemarle is a member of the Chemical - Diversified industry, which includes 41 individual companies and currently sits at #82 in the Zacks Industry Rank. On average, stocks in this group have gained 15.8% this year, meaning that ALB is performing better in terms of year-to-date returns.

In contrast, Commercial Metals falls under the Steel - Producers industry. Currently, this industry has 24 stocks and is ranked #25. Since the beginning of the year, the industry has moved +35.7%.

Investors with an interest in Basic Materials stocks should continue to track Albemarle and Commercial Metals. These stocks will be looking to continue their solid performance.


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