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Is Lithium Americas (LAC) Stock Outpacing Its Basic Materials Peers This Year?

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Investors focused on the Basic Materials space have likely heard of Lithium Americas (LAC - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? 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.

Lithium Americas is a member of the Basic Materials sector. This group includes 245 individual stocks and currently holds a Zacks Sector Rank of #2. 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. LAC is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for LAC's full-year earnings has moved 29.55% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that LAC has returned about 26.45% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 13.21% on average. This shows that Lithium Americas is outperforming its peers so far this year.

To break things down more, LAC belongs to the Chemical - Diversified industry, a group that includes 42 individual companies and currently sits at #88 in the Zacks Industry Rank. On average, this group has gained an average of 6.60% so far this year, meaning that LAC is performing better in terms of year-to-date returns.

Investors with an interest in Basic Materials stocks should continue to track LAC. The stock will be looking to continue its solid performance.


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