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Is Methanex (MEOH) Outperforming 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. Methanex (MEOH - 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Methanex is a member of the Basic Materials sector. This group includes 241 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. Methanex is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for MEOH's full-year earnings has moved 13% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, MEOH has returned 29.1% so far this year. At the same time, Basic Materials stocks have gained an average of 3.8%. As we can see, Methanex is performing better than its sector in the calendar year.

Another stock in the Basic Materials sector, VALE S.A. (VALE - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 16.9%.

The consensus estimate for VALE S.A.'s current year EPS has increased 103.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Methanex belongs to the Chemical - Diversified industry, a group that includes 38 individual companies and currently sits at #177 in the Zacks Industry Rank. Stocks in this group have lost about 7% so far this year, so MEOH is performing better this group in terms of year-to-date returns.

On the other hand, VALE S.A. belongs to the Mining - Iron industry. This 2-stock industry is currently ranked #8. The industry has moved +21.9% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Methanex and VALE S.A. as they attempt to continue their solid performance.


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