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Is Rio Tinto (RIO) Outperforming Other Basic Materials Stocks This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Rio Tinto (RIO - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Rio Tinto is one of 239 individual stocks in the Basic Materials sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics 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 50.72% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, RIO has gained about 8.22% so far this year. In comparison, Basic Materials companies have returned an average of 5.09%. This means that Rio Tinto is outperforming the sector as a whole this year.

Breaking things down more, RIO is a member of the Mining - Miscellaneous industry, which includes 45 individual companies and currently sits at #132 in the Zacks Industry Rank. On average, stocks in this group have gained 7.08% this year, meaning that RIO is performing better 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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