Is Air Products and Chemicals (APD) Stock Outpacing Its Basic Materials Peers This Year?

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 Air Products and Chemicals (APD) one of those stocks right now? 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.

Air Products and Chemicals is one of 275 companies in the Basic Materials group. The Basic Materials group currently sits at #15 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Air Products and Chemicals is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for APD's full-year earnings has moved 1.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, APD has gained about 24% so far this year. In comparison, Basic Materials companies have returned an average of 23.7%. This means that Air Products and Chemicals is performing better than its sector in terms of year-to-date returns.

Avient (AVNT) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 42.2%.

For Avient, the consensus EPS estimate for the current year has increased 3.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Air Products and Chemicals belongs to the Chemical - Diversified industry, which includes 31 individual stocks and currently sits at #93 in the Zacks Industry Rank. Stocks in this group have gained about 21.9% so far this year, so APD is performing better this group in terms of year-to-date returns. Avient is also part of the same industry.

Investors with an interest in Basic Materials stocks should continue to track Air Products and Chemicals and Avient. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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