## Why Perimeter Solutions (PRM) Is Crushing the Basic Materials Sector This Year

When it comes to Basic Materials stocks, most investors focus on average sector performance. But here's what's really happening: **Perimeter Solutions, SA (PRM) has delivered a jaw-dropping 117.3% return year-to-date**, while the entire Basic Materials sector—comprising 239 stocks—has only gained 24.3% on average. That's a massive gap, and it raises an important question: what puts some companies at the perimeter of sector outperformance while others lag behind?

**The Numbers Tell a Clear Story**

PRM currently holds a Zacks Rank of #1 (Strong Buy), signaling strong fundamentals. The driving force? Over the past 90 days, the consensus earnings estimate for PRM's full-year results has jumped 23.6%, indicating improving analyst sentiment and a stronger earnings outlook. This kind of estimate revision is exactly what the Zacks Rank model prioritizes—companies with momentum in earnings expectations tend to outperform over the next 1-3 months.

To put this in perspective, the Basic Materials sector itself ranks #6 among 16 sector groups in the Zacks Sector Rank system. But PRM isn't just beating the sector average; it's operating in the Chemical - Specialty industry, which has actually declined 1.7% year-to-date. Despite headwinds in its own sub-sector, PRM has managed to stand out dramatically.

**Who Else Is Breaking Through?**

Another standout performer is **Fortuna Mining (FSM)**, up 127.5% year-to-date and currently rated a Zacks Rank #2 (Buy). FSM operates in the Mining - Miscellaneous industry, which has performed better at +25.1% year-to-date. The three-month consensus EPS estimate for FSM has increased 20.3%, showing similar positive earnings momentum.

The contrast between these two winners is instructive: PRM is thriving despite sector headwinds, while FSM is riding a stronger industry wave. Both demonstrate that selective stock-picking within Basic Materials can yield significantly better results than tracking the sector average.

**What This Means for Investors**

For those hunting opportunities in Basic Materials, the clear takeaway is that being at the perimeter of sector performance—and choosing the right individual stocks—can make a massive difference. With both PRM and FSM showing strong earnings revision trends and significant year-to-date gains, they represent the kind of targeted opportunities that outpace broad sector exposure.