For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. New Pacific Metals Corp. (NEWP) 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? Let's take a closer look at the stock's year-to-date performance to find out.
New Pacific Metals Corp. is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 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. New Pacific Metals Corp. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for NEWP's full-year earnings has moved 20% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, NEWP has gained about 218.6% so far this year. At the same time, Basic Materials stocks have gained an average of 32.9%. As we can see, New Pacific Metals Corp. is performing better than its sector in the calendar year.
One other Basic Materials stock that has outperformed the sector so far this year is NWPX Infrastructure (NWPX). The stock is up 34.1% year-to-date.
For NWPX Infrastructure, the consensus EPS estimate for the current year has increased 6.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, New Pacific Metals Corp. is a member of the Mining - Miscellaneous industry, which includes 69 individual companies and currently sits at #98 in the Zacks Industry Rank. Stocks in this group have gained about 38.8% so far this year, so NEWP is performing better this group in terms of year-to-date returns.
In contrast, NWPX Infrastructure falls under the Steel - Speciality industry. Currently, this industry has 4 stocks and is ranked #64. Since the beginning of the year, the industry has moved +74.9%.
Investors interested in the Basic Materials sector may want to keep a close eye on New Pacific Metals Corp. and NWPX Infrastructure as they attempt to continue their solid performance.
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New Pacific Metals Corp. (NEWP): Free Stock Analysis Report NWPX Infrastructure, Inc. (NWPX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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