The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Methanex (MEOH) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Methanex is one of 254 companies in the Basic Materials group. The Basic Materials group currently sits at #1 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 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. Methanex is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for MEOH's full-year earnings has moved 0.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, MEOH has gained about 24% so far this year. In comparison, Basic Materials companies have returned an average of 23.6%. This shows that Methanex is outperforming its peers so far this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Agnico Eagle Mines (AEM). The stock has returned 28.1% year-to-date.
Over the past three months, Agnico Eagle Mines' consensus EPS estimate for the current year has increased 39.6%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Methanex belongs to the Chemical - Diversified industry, a group that includes 29 individual companies and currently sits at #213 in the Zacks Industry Rank. Stocks in this group have gained about 27.5% so far this year, so MEOH is slightly underperforming its industry this group in terms of year-to-date returns.
Agnico Eagle Mines, however, belongs to the Mining - Gold industry. Currently, this 43-stock industry is ranked #30. The industry has moved +23.4% so far this year.
Investors interested in the Basic Materials sector may want to keep a close eye on Methanex and Agnico Eagle Mines as they attempt to continue their solid performance.
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Methanex Corporation (MEOH): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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