The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is OR Royalties (OR) one of those stocks right now? 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.
OR Royalties is one of 239 individual stocks in the Basic Materials sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. OR Royalties is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for OR's full-year earnings has moved 8.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, OR has gained about 76.2% so far this year. Meanwhile, the Basic Materials sector has returned an average of 18.6% on a year-to-date basis. This means that OR Royalties is outperforming the sector as a whole this year.
Rio Tinto (RIO) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 19.9%.
The consensus estimate for Rio Tinto's current year EPS has increased 3.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, OR Royalties belongs to the Mining - Miscellaneous industry, which includes 68 individual stocks and currently sits at #81 in the Zacks Industry Rank. This group has gained an average of 21.2% so far this year, so OR is performing better in this area. Rio Tinto is also part of the same industry.
OR Royalties and Rio Tinto could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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OR Royalties Inc. (OR): Free Stock Analysis Report Rio Tinto PLC (RIO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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