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Is Fortescue Metals Group (FSUGY) Stock Outpacing Its Basic Materials Peers This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Fortescue Metals Group (FSUGY - Free Report) one of those stocks right now? 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.

Fortescue Metals Group is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. FSUGY is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for FSUGY's full-year earnings has moved 29.91% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, FSUGY has returned 88.24% so far this year. Meanwhile, the Basic Materials sector has returned an average of 6.54% on a year-to-date basis. This means that Fortescue Metals Group is performing better than its sector in terms of year-to-date returns.

Breaking things down more, FSUGY is a member of the Mining - Iron industry, which includes 2 individual companies and currently sits at #1 in the Zacks Industry Rank. Stocks in this group have lost about 8.62% so far this year, so FSUGY is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to FSUGY as it looks to continue its solid performance.


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