Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Mercer International (MERC) 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.
Mercer International is one of 243 companies in the Basic Materials group. The Basic Materials group currently sits at #6 within 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 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. Mercer International is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for MERC’s full-year earnings has moved 28.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, MERC has returned 19.7% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 5% on average. As we can see, Mercer International is performing better than its sector in the calendar year.
Novagold (NG) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 10.1%.
In Novagold’s case, the consensus EPS estimate for the current year increased 10% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Mercer International belongs to the Paper and Related Products industry, a group that includes 12 individual stocks and currently sits at #47 in the Zacks Industry Rank. On average, stocks in this group have lost 2.2% this year, meaning that MERC is performing better in terms of year-to-date returns.
Novagold, however, belongs to the Mining – Gold industry. Currently, this 37-stock industry is ranked #163. The industry has moved +18.4% so far this year.
Mercer International and Novagold 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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