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 Novozymes A/S (NVZMY) 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.

Novozymes A/S is a member of the Basic Materials sector. This group includes 237 individual stocks and currently holds a Zacks Sector Rank of #15. 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. Novozymes A/S is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for NVZMY's full-year earnings has moved 0.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, NVZMY has returned 2.7% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 5.6% on average. As we can see, Novozymes A/S is performing better than its sector in the calendar year.

Another Basic Materials stock, which has outperformed the sector so far this year, is Paladin Energy (PALAF). The stock has returned 18.9% year-to-date.

The consensus estimate for Paladin Energy's current year EPS has increased 200% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Novozymes A/S belongs to the Chemical - Specialty industry, a group that includes 33 individual companies and currently sits at #145 in the Zacks Industry Rank. On average, this group has gained an average of 6.3% so far this year, meaning that NVZMY is slightly underperforming its industry in terms of year-to-date returns.

Paladin Energy, however, belongs to the Mining - Miscellaneous industry. Currently, this 56-stock industry is ranked #154. The industry has moved -14.5% so far this year.

Investors interested in the Basic Materials sector may want to keep a close eye on Novozymes A/S and Paladin Energy as they attempt to continue their solid performance.

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