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 Albemarle (ALB) 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.
Albemarle is a member of the Basic Materials sector. This group includes 254 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ALB's full-year earnings has moved 435.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ALB has gained about 16.6% so far this year. In comparison, Basic Materials companies have returned an average of 13.4%. As we can see, Albemarle is performing better than its sector in the calendar year.
Buenaventura (BVN) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.4%.
The consensus estimate for Buenaventura's current year EPS has increased 18.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Albemarle is a member of the Chemical - Diversified industry, which includes 29 individual companies and currently sits at #209 in the Zacks Industry Rank. Stocks in this group have gained about 14% so far this year, so ALB is performing better this group in terms of year-to-date returns.
Buenaventura, however, belongs to the Mining - Silver industry. Currently, this 9-stock industry is ranked #16. The industry has moved +11.7% so far this year.
Albemarle and Buenaventura could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Albemarle Corporation (ALB): Free Stock Analysis Report Buenaventura Mining Company Inc. (BVN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
