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Has VALE (VALE) Outpaced Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is VALE (VALE - 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.

VALE is one of 245 individual stocks in the Basic Materials sector. Collectively, these companies sit at #2 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 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. VALE is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for VALE's full-year earnings has moved 47.87% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, VALE has gained about 2.15% so far this year. Meanwhile, the Basic Materials sector has returned an average of 14.10% on a year-to-date basis. This means that VALE is performing better than its sector in terms of year-to-date returns.

Breaking things down more, VALE is a member of the Mining - Iron industry, which includes 2 individual companies and currently sits at #3 in the Zacks Industry Rank. This group has gained an average of 13.46% so far this year, so VALE is slightly underperforming its industry in this area.

Investors in the Basic Materials sector will want to keep a close eye on VALE as it attempts to continue its solid performance.


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