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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. Has Axalta Coating Systems (AXTA - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Axalta Coating Systems is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit at #16 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Axalta Coating Systems is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for AXTA's full-year earnings has moved 6.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, AXTA has gained about 1.2% so far this year. At the same time, Basic Materials stocks have lost an average of 3.6%. As we can see, Axalta Coating Systems 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 Amerigo Resources (ARREF - Free Report) . The stock is up 10.4% year-to-date.

Over the past three months, Amerigo Resources' consensus EPS estimate for the current year has increased 33.3%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Axalta Coating Systems belongs to the Chemical - Specialty industry, which includes 33 individual stocks and currently sits at #168 in the Zacks Industry Rank. On average, this group has lost an average of 19.6% so far this year, meaning that AXTA is performing better in terms of year-to-date returns.

On the other hand, Amerigo Resources belongs to the Mining - Non Ferrous industry. This 12-stock industry is currently ranked #52. The industry has moved +23.2% year to date.

Axalta Coating Systems and Amerigo Resources could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


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