Basic material stocks index (the index) generally outperforms S&P 500. The index outperformed S&P 500 in horizons ranging from as short as 5 days to as long as 5 years and even 10 years. For instance, in the last five days ending November 9, 2010, the index was up 1.35% compared to S&P 500's 0.21% gain.
The sector is diversified comprising more than 11 sub sectors. Stocks in this sector are currently in favor with many investors as indicated by relative strength index. For instance, currently there are 34 companies in Chemical Manufacturing sub sector that have a relative strength at or above 80. Basic material sector also happens to be one of the sectors with more stocks making new 52-week highs.
The sector comprises of nearly 343 stocks that are generally tracked for performance. Yesterday, basic material stocks absolute performance ranged from down $2.89 to up $2.21. Percentage performance ranged from down 22.73% to up 27.96%. In this article I will try to build a portfolio of seven bull stocks in this sector.Aceto Corporation (NASDAQ: ACET)
Aceto was founded in 1947 and is headquartered in Lake Success, New York. I consider this a growth stock. The company's business is organized along product lines into three segments: Health Sciences, Specialty Chemicals and Crop Protection. With business operations in 10 countries, Aceto distributes more than 1,000 chemical compounds used either as principal raw materials or as finished products in the pharmaceutical, agricultural, color, surface coating/ink and general chemical consuming industries.
Yesterday, the stock touched 52 week high of $8.35 and ended the day at $8.16. This compares to all time peak of $14.01 on January 5,2004. Though I don't expect the stock to touch its historic peak any time soon, I do see its 12 month target above $10.Potash Corporation of Saskatche (NYSE: POT)
Potash Corporation of Saskatchewan Inc. (PCS) is one of the largest fertilizer companies in the world, producing the three primary plant nutrients and phosphate animal feed ingredients. POT is the world's largest potash producer (33% of sales and 71% of gross profits in 2009), the third largest in phosphate (35%, 10%), and the third largest in nitrogen (32%, 19%).
Yesterday, the stock ended trading at $141.37, compared to 52 week range of $83.85 and $153.29. This compares to all time peak of $241.6 on June 19,2008. Though I don't expect the stock to touch its historic peak any time in future, I do see its 12 month target above $150.Agrium Inc.