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Are Basic Materials Stocks Lagging Cabot (CBT) This Year?
September 12, 2024

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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 Cabot (CBT - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Cabot is one of 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #16 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 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. Cabot is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CBT's full-year earnings has moved 4.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that CBT has returned about 21.5% since the start of the calendar year. At the same time, Basic Materials stocks have lost an average of 6.8%. This shows that Cabot is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Vista Gold (VGZ - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 37.1%.

In Vista Gold's case, the consensus EPS estimate for the current year increased 250% over the past three months. 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 #213 in the Zacks Industry Rank. Stocks in this group have lost about 5.7% so far this year, so CBT is performing better this group in terms of year-to-date returns.

In contrast, Vista Gold falls under the Mining - Gold industry. Currently, this industry has 37 stocks and is ranked #137. Since the beginning of the year, the industry has moved +21.7%.

Investors with an interest in Basic Materials stocks should continue to track Cabot and Vista Gold. These stocks will be looking to continue their solid performance.




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