Yahoo Finance Is Ecolab (ECL) Stock Outpacing Its Basic Materials Peers This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Ecolab (ECL) 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.
Ecolab is one of 240 companies in the Basic Materials group. The Basic Materials group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Ecolab is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ECL's full-year earnings has moved 5.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that ECL has returned about 11.5% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of -2.2% on a year-to-date basis. As we can see, Ecolab is performing better than its sector in the calendar year.
Another stock in the Basic Materials sector, Pan American Silver (PAAS), has outperformed the sector so far this year. The stock's year-to-date return is 16.5%.
In Pan American Silver's case, the consensus EPS estimate for the current year increased 63.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Ecolab is a member of the Chemical - Specialty industry, which includes 33 individual companies and currently sits at #51 in the Zacks Industry Rank. Stocks in this group have lost about 20.5% so far this year, so ECL is performing better this group in terms of year-to-date returns.
In contrast, Pan American Silver falls under the Mining - Silver industry. Currently, this industry has 10 stocks and is ranked #30. Since the beginning of the year, the industry has moved +15.8%.
Investors interested in the Basic Materials sector may want to keep a close eye on Ecolab and Pan American Silver as they attempt to continue their solid performance.
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Ecolab Inc. (ECL) : Free Stock Analysis Report
Pan American Silver Corp. (PAAS) : Free Stock Analysis Report
