The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Amerigo Resources (ARREF) 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.
Amerigo Resources is a member of the Basic Materials sector. This group includes 241 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Amerigo Resources is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ARREF’s full-year earnings has moved 13.3% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the most recent data, ARREF has returned 21.2% so far this year. Meanwhile, the Basic Materials sector has returned an average of 7.6% on a year-to-date basis. This means that Amerigo Resources is performing better than its sector in terms of year-to-date returns.
One other Basic Materials stock that has outperformed the sector so far this year is Allegheny Technologies (ATI). The stock is up 75.8% year-to-date.
The consensus estimate for Allegheny Technologies’ current year EPS has increased 27.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Amerigo Resources belongs to the Mining – Non Ferrous industry, a group that includes 11 individual companies and currently sits at #73 in the Zacks Industry Rank. On average, this group has lost an average of 13% so far this year, meaning that ARREF is performing better in terms of year-to-date returns.
Allegheny Technologies, however, belongs to the Steel – Speciality industry. Currently, this 4-stock industry is ranked #19. The industry has moved +41% so far this year.
Investors with an interest in Basic Materials stocks should continue to track Amerigo Resources and Allegheny Technologies. These stocks will be looking to continue their solid performance.
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