For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Aris Mining Corporation (ARMN) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
Aris Mining Corporation is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #7. 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Aris Mining Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ARMN's full-year earnings has moved 19.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, ARMN has gained about 207.7% so far this year. In comparison, Basic Materials companies have returned an average of 20.8%. This means that Aris Mining Corporation is outperforming the sector as a whole this year.
One other Basic Materials stock that has outperformed the sector so far this year is Ivanhoe Electric (IE). The stock is up 74.2% year-to-date.
In Ivanhoe Electric's case, the consensus EPS estimate for the current year increased 8.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Aris Mining Corporation belongs to the Mining - Gold industry, a group that includes 41 individual companies and currently sits at #22 in the Zacks Industry Rank. Stocks in this group have gained about 119% so far this year, so ARMN is performing better this group in terms of year-to-date returns.
In contrast, Ivanhoe Electric falls under the Mining - Miscellaneous industry. Currently, this industry has 69 stocks and is ranked #53. Since the beginning of the year, the industry has moved +25.1%.
Investors with an interest in Basic Materials stocks should continue to track Aris Mining Corporation and Ivanhoe Electric. These stocks will be looking to continue their solid performance.
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Aris Mining Corporation (ARMN): Free Stock Analysis Report Ivanhoe Electric Inc. (IE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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