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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. First Majestic Silver (AG) 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.
First Majestic Silver is one of 235 companies in the Basic Materials group. The Basic Materials group currently sits at #9 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. First Majestic Silver is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AG's full-year earnings has moved 76.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, AG has gained about 6.4% so far this year. Meanwhile, the Basic Materials sector has returned an average of -7.9% on a year-to-date basis. This shows that First Majestic Silver is outperforming its peers so far this year.
One other Basic Materials stock that has outperformed the sector so far this year is Mosaic (MOS). The stock is up 10.4% year-to-date.
Over the past three months, Mosaic's consensus EPS estimate for the current year has increased 10.2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, First Majestic Silver is a member of the Mining - Silver industry, which includes 9 individual companies and currently sits at #4 in the Zacks Industry Rank. On average, this group has gained an average of 26.5% so far this year, meaning that AG is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Mosaic falls under the Fertilizers industry. Currently, this industry has 8 stocks and is ranked #62. Since the beginning of the year, the industry has moved -7.9%.
First Majestic Silver and Mosaic 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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