The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has BHP Group Limited Sponsored (BHP) been one of those stocks this year? Let’s take a closer look at the stock’s year-to-date performance to find out.
BHP Group Limited Sponsored is one of 239 individual stocks in the Basic Materials sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. BHP is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BHP’s full-year earnings has moved 26.98% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the latest available data, BHP has gained about 7.71% so far this year. In comparison, Basic Materials companies have returned an average of 5.98%. This means that BHP Group Limited Sponsored is performing better than its sector in terms of year-to-date returns.
To break things down more, BHP belongs to the Mining – Miscellaneous industry, a group that includes 45 individual companies and currently sits at #104 in the Zacks Industry Rank. On average, this group has gained an average of 7.80% so far this year, meaning that BHP is slightly underperforming its industry in terms of year-to-date returns.
BHP will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.
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