Is FrancoNevada (FNV) Stock Outpacing Its Basic Materials Peers This Year?

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Franco-Nevada (FNV) one of those stocks right now? 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.

Franco-Nevada is a member of the Basic Materials sector. This group includes 233 individual stocks and currently holds a Zacks Sector Rank of #11. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Franco-Nevada is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for FNV's full-year earnings has moved 20.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, FNV has returned 46.1% so far this year. Meanwhile, the Basic Materials sector has returned an average of 9.3% on a year-to-date basis. This means that Franco-Nevada is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Fortuna Mining (FSM), has outperformed the sector so far this year. The stock's year-to-date return is 60.4%.

Over the past three months, Fortuna Mining's consensus EPS estimate for the current year has increased 12%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Franco-Nevada belongs to the Mining - Gold industry, a group that includes 39 individual stocks and currently sits at #45 in the Zacks Industry Rank. Stocks in this group have gained about 58.4% so far this year, so FNV is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, Fortuna Mining belongs to the Mining - Miscellaneous industry. This 58-stock industry is currently ranked #138. The industry has moved +10.9% year to date.

Investors with an interest in Basic Materials stocks should continue to track Franco-Nevada and Fortuna Mining. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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