Investors focused on the Basic Materials space have likely heard of Rio Tinto (RIO - Free Report) , 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 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #5 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. RIO is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for RIO's full-year earnings has moved 25.65% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, RIO has returned 7.72% so far this year. At the same time, Basic Materials stocks have gained an average of 4.16%. This means that Rio Tinto is outperforming the sector as a whole this year.
To break things down more, RIO belongs to the Mining - Miscellaneous industry, a group that includes 42 individual companies and currently sits at #120 in the Zacks Industry Rank. Stocks in this group have gained about 14.05% so far this year, so RIO is slightly underperforming its industry this group in terms of year-to-date returns.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to RIO as it looks to continue its solid performance.