The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is VALE (VALE) 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.
VALE is a member of the Basic Materials sector. This group includes 247 individual stocks and currently holds a Zacks Sector Rank of #12. 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 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. VALE is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for VALE's full-year earnings has moved 1.93% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, VALE has moved about 24.77% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of -9.63% on a year-to-date basis. This means that VALE is outperforming the sector as a whole this year.
Breaking things down more, VALE is a member of the Mining - Iron industry, which includes 2 individual companies and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 28.55% so far this year, meaning that VALE is slightly underperforming its industry in terms of year-to-date returns.
VALE will likely be looking to continue its solid performance, so investors interested Basic Materials stocks should continue to pay close attention to the company.