IOSP

Avient (AVNT) and Innospec (IOSP), both Basic Materials stocks with Zacks Rank #2 (Buy), are outperforming their sector peers year-to-date. AVNT has returned 24.8% versus the sector average of 9.5%, while IOSP has gained 26.2%. Both stocks have seen improving analyst sentiment with consensus EPS estimates increasing 4% over the past three months.

Dow Inc. (DOW) is benefiting from high-return growth projects, cost initiatives, and advantaged feedstock positions, with over $1.3 billion in self-help benefits expected in 2026. However, the company faces headwinds from soft demand, seasonal construction weakness, and elevated energy and feedstock costs. DOW carries a Zacks Rank #3 (Hold) rating.

Rayonier Advanced Materials (RYAM) announced a partnership with Albioma and the Beasley Group to construct the Altamaha Green Energy project, a 70-megawatt biomass cogeneration facility adjacent to its Jesup, Georgia manufacturing facility. RYAM will retain a 14% equity interest with an option to increase to 16%, and expects $8-10 million in annual distributions once operations begin in 2029. The project is projected to save RYAM $30 million in future capital expenditures while improving environmental performance and reliability.

Hawkins, Inc. (HWKN) has completed its acquisition of Eagle Labs, Inc., expanding its Water Treatment business into the Dallas-Fort Worth region of Texas. The acquisition adds two locations and brings HWKN's total Texas Water Treatment facilities to seven.

Eagle Labs brings expertise in coagulants and polymers along with established North Texas customer relationships. However, HWKN shares are down 30.7% over the past year and currently carry a Zacks Rank #4 (Sell).

Ashland Inc. (ASH) shares have surged 30.2% over the past six months, significantly outperforming its industry. The rally is driven by improved margin resilience from cost reductions and portfolio optimization, strong free cash flow generation of $103 million, and a doubled $1 billion share buyback authorization. The company's shift to a business-unit-focused operating model supports profitable growth in specialty chemicals.