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Are Basic Materials Stocks Lagging FreeportMcMoRan (FCX) 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. Freeport-McMoRan (FCX - 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? 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.

Freeport-McMoRan is a member of our Basic Materials group, which includes 295 different companies and currently sits at #13 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. Freeport-McMoRan is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for FCX's full-year earnings has moved 9.9% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, FCX has gained about 23.3% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 7.9% on average. This means that Freeport-McMoRan is outperforming the sector as a whole this year.

One other Basic Materials stock that has outperformed the sector so far this year is L.B. Foster (FSTR - Free Report) . The stock is up 54.5% year-to-date.

In L.B. Foster's case, the consensus EPS estimate for the current year increased 4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Freeport-McMoRan belongs to the Mining - Non Ferrous industry, a group that includes 10 individual stocks and currently sits at #179 in the Zacks Industry Rank. On average, stocks in this group have gained 10.2% this year, meaning that FCX is performing better in terms of year-to-date returns.

L.B. Foster, however, belongs to the Steel - Producers industry. Currently, this 17-stock industry is ranked #96. The industry has moved +37.7% so far this year.

Investors interested in the Basic Materials sector may want to keep a close eye on Freeport-McMoRan and L.B. Foster as they attempt to continue their solid performance.

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