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 Buenaventura (BVN) 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.
Buenaventura is one of 246 individual stocks in the Basic Materials sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. 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 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. Buenaventura is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for BVN’s full-year earnings has moved 136.1% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the most recent data, BVN has returned 21.2% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 15.4% on average. This means that Buenaventura is outperforming the sector as a whole this year.
Anglo American (NGLOY) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 17.3%.
Over the past three months, Anglo American’s consensus EPS estimate for the current year has increased 11.4%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Buenaventura belongs to the Mining – Silver industry, a group that includes 11 individual companies and currently sits at #206 in the Zacks Industry Rank. Stocks in this group have lost about 25.1% so far this year, so BVN is performing better this group in terms of year-to-date returns.
In contrast, Anglo American falls under the Mining – Miscellaneous industry. Currently, this industry has 51 stocks and is ranked #86. Since the beginning of the year, the industry has moved +15.1%.
Buenaventura and Anglo American could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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