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Is Cabot (CBT) Outperforming Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Cabot (CBT - 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.

Cabot is one of 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #11 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 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. Cabot is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CBT's full-year earnings has moved 4.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CBT has returned about 15.7% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of -8.9% on a year-to-date basis. This shows that Cabot is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Centerra Gold Inc. (CGAU - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 5.4%.

Over the past three months, Centerra Gold Inc.'s consensus EPS estimate for the current year has increased 46.7%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Cabot belongs to the Chemical - Diversified industry, a group that includes 29 individual companies and currently sits at #216 in the Zacks Industry Rank. This group has lost an average of 6.2% so far this year, so CBT is performing better in this area.

In contrast, Centerra Gold Inc. falls under the Mining - Gold industry. Currently, this industry has 37 stocks and is ranked #52. Since the beginning of the year, the industry has moved +13.9%.

Investors interested in the Basic Materials sector may want to keep a close eye on Cabot and Centerra Gold Inc. as they attempt to continue their solid performance.


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