The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Anglo American (NGLOY) 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.
Anglo American is one of 275 individual stocks in the Basic Materials sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. 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 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. Anglo American is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for NGLOY's full-year earnings has moved 56.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, NGLOY has moved about 12.6% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 4.5% on average. This shows that Anglo American is outperforming its peers so far this year.
Another stock in the Basic Materials sector, Solitario Resources (XPL), has outperformed the sector so far this year. The stock's year-to-date return is 7.9%.
In Solitario Resources' case, the consensus EPS estimate for the current year increased 21.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Anglo American belongs to the Mining - Miscellaneous industry, a group that includes 85 individual companies and currently sits at #165 in the Zacks Industry Rank. This group has gained an average of 8.1% so far this year, so NGLOY is performing better in this area. Solitario Resources is also part of the same industry.
Investors interested in the Basic Materials sector may want to keep a close eye on Anglo American and Solitario Resources as they attempt to continue their solid performance.
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Anglo American (NGLOY): Free Stock Analysis Report
Solitario Resources Corp. (XPL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).