Are Basic Materials Stocks Lagging Almonty Industries Inc. (ALM) This Year?
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Almonty Industries Inc. (ALM) 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.
Almonty Industries Inc. is one of 275 companies in the Basic Materials group. The Basic Materials group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Almonty Industries Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ALM's full-year earnings has moved 2.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that ALM has returned about 24.3% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 6.9% on a year-to-date basis. This shows that Almonty Industries Inc. is outperforming its peers so far this year.
Another stock in the Basic Materials sector, Element Solutions (ESI), has outperformed the sector so far this year. The stock's year-to-date return is 39.2%.
For Element Solutions, the consensus EPS estimate for the current year has increased 1.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Almonty Industries Inc. belongs to the Mining - Miscellaneous industry, a group that includes 85 individual stocks and currently sits at #203 in the Zacks Industry Rank. On average, this group has gained an average of 10.5% so far this year, meaning that ALM is performing better in terms of year-to-date returns.
Element Solutions, however, belongs to the Chemical - Specialty industry. Currently, this 46-stock industry is ranked #82. The industry has moved +11.8% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Almonty Industries Inc. and Element Solutions as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
