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 Buenaventura (BVN) 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.
Buenaventura is a member of our Basic Materials group, which includes 241 different companies and currently sits at #10 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 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 25.1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that BVN has returned about 144% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 28.5%. This means that Buenaventura is outperforming the sector as a whole this year.
One other Basic Materials stock that has outperformed the sector so far this year is Equinox Gold (EQX). The stock is up 176.7% year-to-date.
In Equinox Gold's case, the consensus EPS estimate for the current year increased 25.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Buenaventura belongs to the Mining - Silver industry, a group that includes 9 individual companies and currently sits at #17 in the Zacks Industry Rank. On average, stocks in this group have gained 177.2% this year, meaning that BVN is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Equinox Gold falls under the Mining - Gold industry. Currently, this industry has 41 stocks and is ranked #32. Since the beginning of the year, the industry has moved +145.8%.
Buenaventura and Equinox Gold 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 Equinox Gold Corp. (EQX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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