The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has BHP (BHP) 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.
BHP is one of 255 individual stocks in the Basic Materials sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. 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. BHP is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for BHP's full-year earnings has moved 10% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, BHP has returned 19% so far this year. In comparison, Basic Materials companies have returned an average of 16%. This shows that BHP is outperforming its peers so far this year.
Another stock in the Basic Materials sector, Buenaventura (BVN), has outperformed the sector so far this year. The stock's year-to-date return is 33.1%.
The consensus estimate for Buenaventura's current year EPS has increased 52.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, BHP belongs to the Mining - Miscellaneous industry, a group that includes 73 individual stocks and currently sits at #48 in the Zacks Industry Rank. On average, stocks in this group have gained 17.6% this year, meaning that BHP is performing better in terms of year-to-date returns.
On the other hand, Buenaventura belongs to the Mining - Silver industry. This 9-stock industry is currently ranked #14. The industry has moved +21.7% year to date.
Investors interested in the Basic Materials sector may want to keep a close eye on BHP and Buenaventura as they attempt to continue their solid performance.
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BHP Group Limited Sponsored ADR (BHP): Free Stock Analysis Report Buenaventura Mining Company Inc. (BVN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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