Back to top

Image: Bigstock

Is Balchem (BCPC) Stock Outpacing Its Basic Materials Peers 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. Blachem (BCPC - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.

Blachem is a member of our Basic Materials group, which includes 235 different companies and currently sits at #14 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 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. Blachem is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BCPC's full-year earnings has moved 5.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that BCPC has returned about 18.9% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of -4.6% on a year-to-date basis. This means that Blachem is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is L.B. Foster (FSTR - Free Report) . The stock is up 8.1% year-to-date.

The consensus estimate for L.B. Foster's current year EPS has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Blachem belongs to the Chemical - Specialty industry, a group that includes 33 individual companies and currently sits at #159 in the Zacks Industry Rank. On average, this group has lost an average of 13.7% so far this year, meaning that BCPC is performing better in terms of year-to-date returns.

In contrast, L.B. Foster falls under the Steel - Producers industry. Currently, this industry has 19 stocks and is ranked #222. Since the beginning of the year, the industry has moved -19.2%.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Blachem and L.B. Foster as they could maintain their solid performance.


See More Zacks Research for These Tickers


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


L.B. Foster Company (FSTR) - free report >>

Balchem Corporation (BCPC) - free report >>

Published in