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Has Alpha Metallurgical (AMR) 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. Alpha Metallurgical (AMR - 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? 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.

Alpha Metallurgical is one of 243 individual stocks in the Basic Materials sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. Alpha Metallurgical is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for AMR's full-year earnings has moved 60.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, AMR has moved about 99.3% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 7.7% on a year-to-date basis. As we can see, Alpha Metallurgical is performing better than its sector in the calendar year.

Another Basic Materials stock, which has outperformed the sector so far this year, is NexGen Energy (NXE - Free Report) . The stock has returned 30.9% year-to-date.

The consensus estimate for NexGen Energy's current year EPS has increased 16.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Alpha Metallurgical belongs to the Mining - Miscellaneous industry, which includes 50 individual stocks and currently sits at #81 in the Zacks Industry Rank. This group has gained an average of 20.6% so far this year, so AMR is performing better in this area. NexGen Energy is also part of the same industry.

Alpha Metallurgical and NexGen Energy could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


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