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Has VALE (VALE) Outpaced Other Basic Materials Stocks This Year?

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Investors focused on the Basic Materials space have likely heard of VALE (VALE - 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 VALE and the rest of the Basic Materials group's stocks.

VALE is one of 245 individual stocks in the Basic Materials sector. Collectively, these companies sit at #7 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 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. VALE is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for VALE's full-year earnings has moved 48.53% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, VALE has gained about 26.13% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 25.39% on average. This means that VALE is performing better than its sector in terms of year-to-date returns.

To break things down more, VALE belongs to the Mining - Iron industry, a group that includes 2 individual companies and currently sits at #235 in the Zacks Industry Rank. Stocks in this group have gained about 30.55% so far this year, so VALE 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 VALE as it looks to continue its solid performance.


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