Back to top

Image: Bigstock

Is Buenaventura Mining (BVN) Outperforming Other Basic Materials Stocks This Year?

Read MoreHide Full Article

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Buenaventura (BVN - 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? 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.

Buenaventura is one of 241 companies in the Basic Materials group. The Basic Materials group currently sits at #4 within 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Buenaventura is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BVN's full-year earnings has moved 40% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that BVN has returned about 13.8% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 1% on a year-to-date basis. This shows that Buenaventura is outperforming its peers so far this year.

American Vanguard (AVD - 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 36.1%.

The consensus estimate for American Vanguard's current year EPS has increased 18% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Buenaventura is a member of the Mining - Silver industry, which includes 12 individual companies and currently sits at #213 in the Zacks Industry Rank. This group has lost an average of 13.4% so far this year, so BVN is performing better in this area.

American Vanguard, however, belongs to the Chemical - Specialty industry. Currently, this 33-stock industry is ranked #97. The industry has moved -19.4% so far this year.

Buenaventura and American Vanguard could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

American Vanguard Corporation (AVD) - free report >>

Buenaventura Mining Company Inc. (BVN) - free report >>

Published in