Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Rio Tinto (LON:RIO) 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.
Rio Tinto is one of 238 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. RIO is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for RIO's full-year earnings has moved 46.27% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, RIO has returned 21.39% so far this year. In comparison, Basic Materials companies have returned an average of 11.90%. This means that Rio Tinto is outperforming the sector as a whole this year.
To break things down more, RIO belongs to the Mining - Miscellaneous industry, a group that includes 39 individual companies and currently sits at #34 in the Zacks Industry Rank. Stocks in this group have gained about 21.11% so far this year, so RIO 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 RIO as it looks to continue its solid performance.
Rio Tinto PLC (RIO): Free Stock Analysis Report
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