The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Nexa Resources S.A. (NEXA) 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? 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.
Nexa Resources S.A. is a member of the Basic Materials sector. This group includes 255 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Nexa Resources S.A. is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for NEXA's full-year earnings has moved 108.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, NEXA has gained about 29% so far this year. At the same time, Basic Materials stocks have gained an average of 18.2%. This means that Nexa Resources S.A. is outperforming the sector as a whole this year.
Denison Mine (DNN) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 45.9%.
The consensus estimate for Denison Mine's current year EPS has increased 4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Nexa Resources S.A. is a member of the Mining - Miscellaneous industry, which includes 73 individual companies and currently sits at #50 in the Zacks Industry Rank. On average, this group has gained an average of 21.8% so far this year, meaning that NEXA is performing better in terms of year-to-date returns. Denison Mine is also part of the same industry.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Nexa Resources S.A. and Denison Mine as they could maintain their solid performance.
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Nexa Resources S.A. (NEXA): Free Stock Analysis Report Denison Mine Corp (DNN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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