Are Basic Materials Stocks Lagging Compass Minerals International (CMP) 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. Compass Minerals (CMP) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Compass Minerals is a member of our Basic Materials group, which includes 255 different companies and currently sits at #2 in 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. Compass Minerals is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for CMP's full-year earnings has moved 27% 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, CMP has returned 11.9% so far this year. In comparison, Basic Materials companies have returned an average of 11.7%. This means that Compass Minerals is outperforming the sector as a whole this year.

One other Basic Materials stock that has outperformed the sector so far this year is Orla Mining Ltd. (ORLA). The stock is up 21.2% year-to-date.

For Orla Mining Ltd., the consensus EPS estimate for the current year has increased 21.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Compass Minerals is a member of the Chemical - Diversified industry, which includes 29 individual companies and currently sits at #201 in the Zacks Industry Rank. On average, this group has gained an average of 24.6% so far this year, meaning that CMP is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, Orla Mining Ltd. belongs to the Mining - Gold industry. This 43-stock industry is currently ranked #29. The industry has moved +10.4% year to date.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Compass Minerals and Orla Mining Ltd. as they could maintain their solid performance.

Zacks' Research Chief Picks Stock Most Likely to "At Least Double"

Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.

See Our Top Stock to Double (Plus 4 Runners Up) >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Compass Minerals International, Inc. (CMP): Free Stock Analysis Report

Orla Mining Ltd. (ORLA): Free Stock Analysis Report

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

Zacks Investment Research