For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Aluminum (ACH) one of those stocks right now? 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.
Aluminum is a member of our Basic Materials group, which includes 251 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Aluminum is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ACH’s full-year earnings has moved 9.9% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the most recent data, ACH has returned 57.4% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 7.9% on average. This means that Aluminum is outperforming the sector as a whole this year.
Another stock in the Basic Materials sector, AdvanSix (ASIX), has outperformed the sector so far this year. The stock’s year-to-date return is 130.2%.
The consensus estimate for AdvanSix’s current year EPS has increased 14.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Aluminum is a member of the Mining – Non Ferrous industry, which includes 10 individual companies and currently sits at #118 in the Zacks Industry Rank. On average, stocks in this group have gained 19.3% this year, meaning that ACH is performing better in terms of year-to-date returns.
AdvanSix, however, belongs to the Chemical – Specialty industry. Currently, this 37-stock industry is ranked #173. The industry has moved +6.4% so far this year.
Investors with an interest in Basic Materials stocks should continue to track Aluminum and AdvanSix. These stocks will be looking to continue their solid performance.
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