Are Basic Materials Stocks Lagging Lynas Rare Earths Limited - Sponsored ADR (LYSDY) 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. Lynas Rare Earths Limited - Sponsored ADR (LYSDY) 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.

Lynas Rare Earths Limited - Sponsored ADR is a member of the Basic Materials sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #13. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Lynas Rare Earths Limited - Sponsored ADR is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for LYSDY's full-year earnings has moved 35.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, LYSDY has moved about 80.4% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 18.4%. This shows that Lynas Rare Earths Limited - Sponsored ADR is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Nexa Resources S.A. (NEXA), has outperformed the sector so far this year. The stock's year-to-date return is 65.5%.

For Nexa Resources S.A., the consensus EPS estimate for the current year has increased 69.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Lynas Rare Earths Limited - Sponsored ADR is a member of the Mining - Miscellaneous industry, which includes 72 individual companies and currently sits at #144 in the Zacks Industry Rank. On average, stocks in this group have gained 23.3% this year, meaning that LYSDY is performing better in terms of year-to-date returns. Nexa Resources S.A. is also part of the same industry.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Lynas Rare Earths Limited - Sponsored ADR and Nexa Resources S.A. as they could maintain their solid performance.

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

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