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Is Amerigo Resources (ARREF) 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. Is Amerigo Resources (ARREF - Free Report) one of those stocks right now? 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.

Amerigo Resources is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. Amerigo Resources is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ARREF's full-year earnings has moved 33.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ARREF has returned about 19.3% since the start of the calendar year. At the same time, Basic Materials stocks have lost an average of 3.4%. This means that Amerigo Resources is performing better than its sector in terms of year-to-date returns.

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 6.6%.

In American Vanguard's case, the consensus EPS estimate for the current year increased 8.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Amerigo Resources belongs to the Mining - Non Ferrous industry, a group that includes 12 individual companies and currently sits at #30 in the Zacks Industry Rank. On average, this group has gained an average of 25.9% so far this year, meaning that ARREF is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, American Vanguard belongs to the Chemical - Specialty industry. This 33-stock industry is currently ranked #47. The industry has moved -20.1% year to date.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Amerigo Resources and American Vanguard as they could maintain their solid performance.


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