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Are Basic Materials Stocks Lagging DuPont de Nemours (DD) This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is DuPont de Nemours (DD - 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.

DuPont de Nemours is one of 235 companies in the Basic Materials group. The Basic Materials group currently sits at #12 within 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 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. DuPont de Nemours is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DD's full-year earnings has moved 4.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, DD has returned 5.8% so far this year. Meanwhile, the Basic Materials sector has returned an average of -3.4% on a year-to-date basis. This means that DuPont de Nemours is performing better than its sector in terms of year-to-date returns.

Another stock in the Basic Materials sector, Perimeter Solutions, SA (PRM - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 188.5%.

Over the past three months, Perimeter Solutions, SA's consensus EPS estimate for the current year has increased 26.5%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, DuPont de Nemours belongs to the Chemical - Diversified industry, a group that includes 29 individual stocks and currently sits at #206 in the Zacks Industry Rank. This group has lost an average of 2.6% so far this year, so DD is performing better in this area.

In contrast, Perimeter Solutions, SA falls under the Chemical - Specialty industry. Currently, this industry has 33 stocks and is ranked #174. Since the beginning of the year, the industry has moved -15.6%.

DuPont de Nemours and Perimeter Solutions, SA 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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