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Is Glencore (GLNCY) Stock Outpacing Its Basic Materials Peers 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. Glencore PLC (GLNCY - 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? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

Glencore PLC is one of 240 companies in the Basic Materials group. The Basic Materials group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Glencore PLC is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for GLNCY's full-year earnings has moved 72.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, GLNCY has moved about 13.6% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 2.7%. This shows that Glencore PLC is outperforming its peers so far this year.

Rio Tinto (RIO - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 2.7%.

In Rio Tinto's case, the consensus EPS estimate for the current year increased 62.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Glencore PLC is a member of the Mining - Miscellaneous industry, which includes 49 individual companies and currently sits at #55 in the Zacks Industry Rank. Stocks in this group have gained about 11% so far this year, so GLNCY is performing better this group in terms of year-to-date returns. Rio Tinto is also part of the same industry.

Glencore PLC and Rio Tinto could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


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