For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Arch Coal (ARCH - Free Report) been one of those stocks this year? 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.
Arch Coal is one of 252 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 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 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. ARCH is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ARCH's full-year earnings has moved 39.32% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ARCH has moved about 2.25% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of -8.25%. As we can see, Arch Coal is performing better than its sector in the calendar year.
Breaking things down more, ARCH is a member of the Mining - Miscellaneous industry, which includes 41 individual companies and currently sits at #195 in the Zacks Industry Rank. This group has lost an average of 1.14% so far this year, so ARCH is performing better in this area.
Investors with an interest in Basic Materials stocks should continue to track ARCH. The stock will be looking to continue its solid performance.