The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has American Vanguard (AVD) been one of those stocks this year? 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.
American Vanguard is a member of the Basic Materials sector. This group includes 242 individual stocks and currently holds a Zacks Sector Rank of #5. 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. American Vanguard is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AVD’s full-year earnings has moved 1.1% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the most recent data, AVD has returned 20% so far this year. Meanwhile, the Basic Materials sector has returned an average of 14.5% on a year-to-date basis. This means that American Vanguard is performing better than its sector in terms of year-to-date returns.
Southern Copper (SCCO) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 23.6%.
For Southern Copper, the consensus EPS estimate for the current year has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, American Vanguard belongs to the Chemical – Specialty industry, a group that includes 35 individual companies and currently sits at #154 in the Zacks Industry Rank. Stocks in this group have lost about 14.3% so far this year, so AVD is performing better this group in terms of year-to-date returns.
On the other hand, Southern Copper belongs to the Mining – Non Ferrous industry. This 11-stock industry is currently ranked #212. The industry has moved +21.2% year to date.
American Vanguard and Southern Copper 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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