Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Freeport-McMoRan (FCX) 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? 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.
Freeport-McMoRan is one of 294 companies in the Basic Materials group. The Basic Materials group currently sits at #12 within 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 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. Freeport-McMoRan is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FCX's full-year earnings has moved 7.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that FCX has returned about 37.3% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 9.4%. As we can see, Freeport-McMoRan is performing better than its sector in the calendar year.
Steel Dynamics (STLD) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 44.7%.
In Steel Dynamics' case, the consensus EPS estimate for the current year increased 5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Freeport-McMoRan belongs to the Mining - Non Ferrous industry, a group that includes 10 individual companies and currently sits at #202 in the Zacks Industry Rank. This group has gained an average of 24% so far this year, so FCX is performing better in this area.
In contrast, Steel Dynamics falls under the Steel - Producers industry. Currently, this industry has 17 stocks and is ranked #75. Since the beginning of the year, the industry has moved +39.7%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Freeport-McMoRan and Steel Dynamics as they could maintain their solid performance.
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Freeport-McMoRan Inc. (FCX): Free Stock Analysis Report
Steel Dynamics, Inc. (STLD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).