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Is BHP Group (BHP) Outperforming Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. BHP Group (BHP - Free Report) 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 BHP and the rest of the Basic Materials group's stocks.

BHP Group is one of 235 individual stocks in the Basic Materials sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. BHP is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for BHP's full-year earnings has moved 25.37% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, BHP has returned 19.96% so far this year. In comparison, Basic Materials companies have returned an average of 19.95%. As we can see, BHP Group is performing better than its sector in the calendar year.

Looking more specifically, BHP belongs to the Mining - Miscellaneous industry, a group that includes 42 individual stocks and currently sits at #204 in the Zacks Industry Rank. On average, this group has gained an average of 28.15% 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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