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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. Has Fortuna Mining (FSM) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
Fortuna Mining is one of 232 individual stocks in the Basic Materials sector. Collectively, these companies sit at #8 in 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Fortuna Mining is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FSM's full-year earnings has moved 4.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, FSM has gained about 42% so far this year. At the same time, Basic Materials stocks have gained an average of 2.6%. This shows that Fortuna Mining is outperforming its peers so far this year.
Another stock in the Basic Materials sector, Akzo Nobel NV (AKZOY), has outperformed the sector so far this year. The stock's year-to-date return is 4.5%.
Over the past three months, Akzo Nobel NV's consensus EPS estimate for the current year has increased 3.2%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Fortuna Mining belongs to the Mining - Miscellaneous industry, a group that includes 58 individual companies and currently sits at #142 in the Zacks Industry Rank. On average, this group has gained an average of 3.2% so far this year, meaning that FSM is performing better in terms of year-to-date returns.
On the other hand, Akzo Nobel NV belongs to the Chemical - Diversified industry. This 28-stock industry is currently ranked #225. The industry has moved -18.7% year to date.
Fortuna Mining and Akzo Nobel NV 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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