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Is American Vanguard (AVD) Stock Outpacing Its Basic Materials Peers 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. Has American Vanguard (AVD - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

American Vanguard is a member of our Basic Materials group, which includes 241 different companies and currently sits at #4 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 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. American Vanguard is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AVD's full-year earnings has moved 1.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, AVD has returned 35.8% so far this year. At the same time, Basic Materials stocks have gained an average of 8.4%. This shows that American Vanguard is outperforming its peers so far this year.

Buenaventura (BVN - 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 30.6%.

For Buenaventura, the consensus EPS estimate for the current year has increased 40% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, American Vanguard belongs to the Chemical - Specialty industry, a group that includes 33 individual stocks and currently sits at #78 in the Zacks Industry Rank. On average, this group has lost an average of 14.2% so far this year, meaning that AVD is performing better in terms of year-to-date returns.

In contrast, Buenaventura falls under the Mining - Silver industry. Currently, this industry has 12 stocks and is ranked #98. Since the beginning of the year, the industry has moved +0.8%.

American Vanguard and Buenaventura 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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