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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. Fresnillo PLC (FNLPF) 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.
Fresnillo PLC is a member of the Basic Materials sector. This group includes 232 individual stocks and currently holds a Zacks Sector Rank of #8. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Fresnillo PLC is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for FNLPF's full-year earnings has moved 23.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, FNLPF has returned 69.2% so far this year. Meanwhile, the Basic Materials sector has returned an average of 5.8% on a year-to-date basis. As we can see, Fresnillo PLC is performing better than its sector in the calendar year.
Another stock in the Basic Materials sector, MONDI PLC UNS (MONDY), has outperformed the sector so far this year. The stock's year-to-date return is 9.5%.
The consensus estimate for MONDI PLC UNS's current year EPS has increased 7.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Fresnillo PLC belongs to the Mining - Silver industry, a group that includes 9 individual stocks and currently sits at #13 in the Zacks Industry Rank. On average, stocks in this group have gained 5.2% this year, meaning that FNLPF is performing better in terms of year-to-date returns.
In contrast, MONDI PLC UNS falls under the Paper and Related Products industry. Currently, this industry has 10 stocks and is ranked #192. Since the beginning of the year, the industry has moved -4.4%.
Fresnillo PLC and MONDI PLC UNS 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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