The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Franco-Nevada (FNV) 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? 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.
Franco-Nevada is a member of our Basic Materials group, which includes 240 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Franco-Nevada is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for FNV's full-year earnings has moved 6.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, FNV has returned 58.6% so far this year. At the same time, Basic Materials stocks have gained an average of 20.8%. This shows that Franco-Nevada is outperforming its peers so far this year.
Avino Silver (ASM) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 443.7%.
In Avino Silver's case, the consensus EPS estimate for the current year increased 14.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Franco-Nevada is a member of the Mining - Gold industry, which includes 41 individual companies and currently sits at #23 in the Zacks Industry Rank. Stocks in this group have gained about 102.1% so far this year, so FNV is slightly underperforming its industry this group in terms of year-to-date returns.
Avino Silver, however, belongs to the Mining - Silver industry. Currently, this 9-stock industry is ranked #5. The industry has moved +99.6% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Franco-Nevada and Avino Silver as they could maintain their solid performance.
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Franco-Nevada Corporation (FNV): Free Stock Analysis Report Avino Silver (ASM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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