Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Arch Coal (ARCH - 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? 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 a member of the Basic Materials sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #15. 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. ARCH is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ARCH's full-year earnings has moved 17.71% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ARCH has returned 11.44% so far this year. In comparison, Basic Materials companies have returned an average of 11.10%. 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 39 individual companies and currently sits at #70 in the Zacks Industry Rank. On average, stocks in this group have gained 15.79% this year, meaning that ARCH is slightly underperforming its industry in terms of year-to-date returns.
ARCH will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.