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 Albemarle (ALB) 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.
Albemarle is a member of the Basic Materials sector. This group includes 254 individual stocks and currently holds a Zacks Sector Rank of #5. 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. Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ALB's full-year earnings has moved 435.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ALB has gained about 16.6% so far this year. In comparison, Basic Materials companies have returned an average of 13.4%. As we can see, Albemarle is performing better than its sector in the calendar year.
Buenaventura (BVN) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.4%.
The consensus estimate for Buenaventura's current year EPS has increased 18.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Albemarle is a member of the Chemical - Diversified industry, which includes 29 individual companies and currently sits at #209 in the Zacks Industry Rank. Stocks in this group have gained about 14% so far this year, so ALB is performing better this group in terms of year-to-date returns.
Buenaventura, however, belongs to the Mining - Silver industry. Currently, this 9-stock industry is ranked #16. The industry has moved +11.7% so far this year.
Albemarle and Buenaventura could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Albemarle Corporation (ALB) : Free Stock Analysis Report
Buenaventura Mining Company Inc. (BVN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
