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Is Axalta Coating Systems (AXTA) Outperforming Other Basic Materials Stocks 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. Axalta Coating Systems (AXTA - 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.

Axalta Coating Systems is one of 233 companies in the Basic Materials group. The Basic Materials group currently sits at #15 within 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).

Over the past three months, the Zacks Consensus Estimate for AXTA's full-year earnings has moved 5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, AXTA has returned 5.8% so far this year. Meanwhile, the Basic Materials sector has returned an average of 5.7% on a year-to-date basis. This shows that Axalta Coating Systems is outperforming its peers so far this year.

Another Basic Materials stock, which has outperformed the sector so far this year, is i-80 Gold (IAUX - Free Report) . The stock has returned 59.6% year-to-date.

The consensus estimate for i-80 Gold's current year EPS has increased 23.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Axalta Coating Systems belongs to the Chemical - Specialty industry, a group that includes 33 individual stocks and currently sits at #194 in the Zacks Industry Rank. This group has gained an average of 3.3% so far this year, so AXTA is performing better in this area.

i-80 Gold, however, belongs to the Mining - Gold industry. Currently, this 41-stock industry is ranked #59. The industry has moved +18.5% so far this year.

Investors interested in the Basic Materials sector may want to keep a close eye on Axalta Coating Systems and i-80 Gold as they attempt to continue their solid performance.


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