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Is FrancoNevada (FNV) Outperforming Other Basic Materials Stocks This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Franco-Nevada (FNV - Free Report) been one of those stocks this year? 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.

Franco-Nevada is one of 232 individual stocks in the Basic Materials sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Franco-Nevada is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for FNV's full-year earnings has moved 11.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, FNV has returned 43.1% so far this year. Meanwhile, the Basic Materials sector has returned an average of 6.8% on a year-to-date basis. This means that Franco-Nevada is outperforming the sector as a whole this year.

Coeur Mining (CDE - 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 42.3%.

The consensus estimate for Coeur Mining's current year EPS has increased 83.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Franco-Nevada belongs to the Mining - Gold industry, a group that includes 39 individual companies and currently sits at #14 in the Zacks Industry Rank. On average, stocks in this group have gained 46.4% this year, meaning that FNV is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Coeur Mining falls under the Mining - Non Ferrous industry. Currently, this industry has 11 stocks and is ranked #43. Since the beginning of the year, the industry has moved -4%.

Investors interested in the Basic Materials sector may want to keep a close eye on Franco-Nevada and Coeur Mining as they attempt to continue their solid performance.


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