Back to top

Image: Bigstock

Has SQM (SQM) Outpaced Other Basic Materials Stocks This Year?

Read MoreHide Full Article

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is SQM (SQM - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

SQM is a member of our Basic Materials group, which includes 244 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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

Within the past quarter, the Zacks Consensus Estimate for SQM's full-year earnings has moved 27.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that SQM has returned about 8.5% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have lost about 2.2% on average. As we can see, SQM is performing better than its sector in the calendar year.

One other Basic Materials stock that has outperformed the sector so far this year is West Fraser Timber Co. Ltd. (WFG - Free Report) . The stock is up 1.8% year-to-date.

The consensus estimate for West Fraser Timber Co. Ltd.'s current year EPS has increased 30.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, SQM belongs to the Fertilizers industry, a group that includes 7 individual stocks and currently sits at #10 in the Zacks Industry Rank. Stocks in this group have gained about 2.5% so far this year, so SQM is performing better this group in terms of year-to-date returns.

On the other hand, West Fraser Timber Co. Ltd. belongs to the Agriculture - Products industry. This 7-stock industry is currently ranked #183. The industry has moved +2.2% year to date.

Investors with an interest in Basic Materials stocks should continue to track SQM and West Fraser Timber Co. Ltd. These stocks will be looking to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Sociedad Quimica y Minera S.A. (SQM) - free report >>

West Fraser Timber Co. Ltd. (WFG) - free report >>

Published in