Are Basic Materials Stocks Lagging BUNGE GLOBAL SA (BG) This Year?

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Bunge Global (BG) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Bunge Global is a member of our Basic Materials group, which includes 275 different companies and currently sits at #12 in 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. Bunge Global is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BG's full-year earnings has moved 17.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, BG has gained about 27.6% so far this year. At the same time, Basic Materials stocks have gained an average of 5.9%. This means that Bunge Global is performing better than its sector in terms of year-to-date returns.

Southern Copper (SCCO) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 21.6%.

Over the past three months, Southern Copper's consensus EPS estimate for the current year has increased 12.9%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Bunge Global belongs to the Agriculture - Products industry, a group that includes 3 individual stocks and currently sits at #43 in the Zacks Industry Rank. On average, this group has gained an average of 22.4% so far this year, meaning that BG is performing better in terms of year-to-date returns.

In contrast, Southern Copper falls under the Mining - Non Ferrous industry. Currently, this industry has 9 stocks and is ranked #89. Since the beginning of the year, the industry has moved +8.1%.

Investors with an interest in Basic Materials stocks should continue to track Bunge Global and Southern Copper. 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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