For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. FreeportMcMoRan (FCX) 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 FCX and the rest of the Basic Materials group’s stocks.
FreeportMcMoRan is a member of our Basic Materials group, which includes 236 different companies and currently sits at #3 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. FCX is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FCX’s full-year earnings has moved 241.41% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, FCX has returned 6.48% so far this year. At the same time, Basic Materials stocks have gained an average of 2.63%. This shows that FreeportMcMoRan is outperforming its peers so far this year.
To break things down more, FCX belongs to the Mining – Non Ferrous industry, a group that includes 9 individual companies and currently sits at #50 in the Zacks Industry Rank. On average, this group has gained an average of 5.21% so far this year, meaning that FCX is performing better in terms of year-to-date returns.
Investors with an interest in Basic Materials stocks should continue to track FCX. The stock will be looking to continue its solid performance.
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