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Are Basic Materials Stocks Lagging Glencore (GLNCY) 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. Glencore PLC (GLNCY - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Glencore PLC is one of 243 individual stocks in the Basic Materials sector. Collectively, these companies sit at #16 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. Glencore PLC is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for GLNCY's full-year earnings has moved 5.5% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, GLNCY has gained about 19.3% so far this year. Meanwhile, the Basic Materials sector has returned an average of -6.6% on a year-to-date basis. This shows that Glencore PLC is outperforming its peers so far this year.

One other Basic Materials stock that has outperformed the sector so far this year is Ingevity (NGVT - Free Report) . The stock is up 3.9% year-to-date.

In Ingevity's case, the consensus EPS estimate for the current year increased 5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Glencore PLC is a member of the Mining - Miscellaneous industry, which includes 50 individual companies and currently sits at #171 in the Zacks Industry Rank. Stocks in this group have lost about 7.9% so far this year, so GLNCY is performing better this group in terms of year-to-date returns.

In contrast, Ingevity falls under the Chemical - Specialty industry. Currently, this industry has 34 stocks and is ranked #211. Since the beginning of the year, the industry has moved -27.1%.

Glencore PLC and Ingevity 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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