Investors focused on the Basic Materials space have likely heard of Rio Tinto (RIO), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of RIO and the rest of the Basic Materials group’s stocks.
Rio Tinto is one of 239 individual stocks in the Basic Materials sector. Collectively, these companies sit at #9 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 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. RIO is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for RIO’s full-year earnings has moved 24.81% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the latest available data, RIO has gained about 5.37% so far this year. Meanwhile, the Basic Materials sector has returned an average of 4.69% on a year-to-date basis. This means that Rio Tinto is performing better than its sector in terms of year-to-date returns.
Breaking things down more, RIO is a member of the Mining – Miscellaneous industry, which includes 45 individual companies and currently sits at #113 in the Zacks Industry Rank. On average, stocks in this group have gained 6.33% this year, meaning that RIO is slightly underperforming its industry in terms of year-to-date returns.
Investors with an interest in Basic Materials stocks should continue to track RIO. The stock will be looking to continue its solid performance.
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