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Is Pan American Silver (PAAS) Stock Outpacing Its Basic Materials Peers 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. Pan American Silver (PAAS - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Pan American Silver is a member of our Basic Materials group, which includes 241 different companies and currently sits at #11 in 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Pan American Silver is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for PAAS' full-year earnings has moved 13.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that PAAS has returned about 144% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 28.4% on a year-to-date basis. This means that Pan American Silver is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Perimeter Solutions, SA (PRM - Free Report) . The stock is up 120.4% year-to-date.

The consensus estimate for Perimeter Solutions, SA's current year EPS has increased 23.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Pan American Silver is a member of the Mining - Silver industry, which includes 9 individual companies and currently sits at #12 in the Zacks Industry Rank. This group has gained an average of 172% so far this year, so PAAS is slightly underperforming its industry in this area.

On the other hand, Perimeter Solutions, SA belongs to the Chemical - Specialty industry. This 38-stock industry is currently ranked #207. The industry has moved -2% year to date.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Pan American Silver and Perimeter Solutions, SA as they could maintain their solid performance.


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