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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Buenaventura (BVN) 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.
Buenaventura is one of 235 companies in the Basic Materials group. The Basic Materials group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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 #1 (Strong Buy).
The Zacks Consensus Estimate for BVN's full-year earnings has moved 19% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, BVN has moved about 11.9% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have lost about 7.8% on average. This means that Buenaventura is outperforming the sector as a whole this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Gold Royalty Corp. (GROY). The stock has returned 0.8% year-to-date.
Over the past three months, Gold Royalty Corp.'s consensus EPS estimate for the current year has increased 500%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Buenaventura is a member of the Mining - Silver industry, which includes 9 individual companies and currently sits at #9 in the Zacks Industry Rank. This group has gained an average of 27.2% so far this year, so BVN is slightly underperforming its industry in this area.
Gold Royalty Corp. however, belongs to the Mining - Gold industry. Currently, this 40-stock industry is ranked #79. The industry has moved +16.1% so far this year.
Investors interested in the Basic Materials sector may want to keep a close eye on Buenaventura and Gold Royalty Corp. as they attempt to continue their solid performance.
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