For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Buenaventura (BVN) 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.
Buenaventura is one of 241 companies in the Basic Materials group. The Basic Materials group currently sits at #6 within 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Buenaventura is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for BVN's full-year earnings has moved 32.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, BVN has returned 118.9% so far this year. In comparison, Basic Materials companies have returned an average of 25.3%. This means that Buenaventura is performing better than its sector in terms of year-to-date returns.
Iamgold (IAG) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 198.1%.
In Iamgold's case, the consensus EPS estimate for the current year increased 4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Buenaventura belongs to the Mining - Silver industry, a group that includes 9 individual stocks and currently sits at #15 in the Zacks Industry Rank. Stocks in this group have gained about 154% so far this year, so BVN is slightly underperforming its industry this group in terms of year-to-date returns.
In contrast, Iamgold falls under the Mining - Gold industry. Currently, this industry has 41 stocks and is ranked #28. Since the beginning of the year, the industry has moved +139.1%.
Buenaventura and Iamgold 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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Buenaventura Mining Company Inc. (BVN): Free Stock Analysis Report Iamgold Corporation (IAG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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