Is VALE (VALE) Outperforming Other Basic Materials Stocks This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. VALE (VALE) 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? One simple way to answer this question is to take a look at the year-to-date performance of VALE and the rest of the Basic Materials group's stocks.
VALE is a member of the Basic Materials sector. This group includes 245 individual stocks and currently holds a Zacks Sector Rank of #6. 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 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. VALE is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for VALE's full-year earnings has moved 21.42% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, VALE has returned 33.65% so far this year. Meanwhile, the Basic Materials sector has returned an average of 25.78% on a year-to-date basis. This means that VALE is performing better than its sector in terms of year-to-date returns.
Breaking things down more, VALE is a member of the Mining - Iron industry, which includes 2 individual companies and currently sits at #137 in the Zacks Industry Rank. On average, this group has gained an average of 38.06% so far this year, meaning that VALE is slightly underperforming its industry in terms of year-to-date returns.
Investors with an interest in Basic Materials stocks should continue to track VALE. The stock will be looking to continue its solid performance.
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