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Has Amerigo Resources (ARREF) Outpaced Other Basic Materials Stocks 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 Amerigo Resources (ARREF - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Amerigo Resources is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #15 within 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. Amerigo Resources is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ARREF's full-year earnings has moved 12.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ARREF has returned 7.2% so far this year. In comparison, Basic Materials companies have returned an average of -7.8%. This means that Amerigo Resources is performing better than its sector in terms of year-to-date returns.

Hawkins (HWKN - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 61.4%.

In Hawkins' case, the consensus EPS estimate for the current year increased 12.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Amerigo Resources is a member of the Mining - Non Ferrous industry, which includes 12 individual companies and currently sits at #94 in the Zacks Industry Rank. On average, stocks in this group have gained 3.4% this year, meaning that ARREF is performing better in terms of year-to-date returns.

On the other hand, Hawkins belongs to the Chemical - Specialty industry. This 33-stock industry is currently ranked #201. The industry has moved -18.4% year to date.

Investors with an interest in Basic Materials stocks should continue to track Amerigo Resources and Hawkins. These stocks will be looking to continue their solid performance.


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