Back to top

Image: Bigstock

Is American Resources (AREC) Outperforming Other Basic Materials Stocks This Year?

Read MoreHide Full Article

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

American Resources Corporation is a member of our Basic Materials group, which includes 230 different companies and currently sits at #15 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 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. American Resources Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for AREC's full-year earnings has moved 84.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, AREC has returned 17.8% so far this year. In comparison, Basic Materials companies have returned an average of 14.8%. This means that American Resources Corporation is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Axalta Coating Systems (AXTA - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 34.3%.

For Axalta Coating Systems, the consensus EPS estimate for the current year has increased 8.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, American Resources Corporation belongs to the Mining - Miscellaneous industry, a group that includes 54 individual companies and currently sits at #150 in the Zacks Industry Rank. On average, stocks in this group have gained 19.3% this year, meaning that AREC is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Axalta Coating Systems falls under the Chemical - Specialty industry. Currently, this industry has 34 stocks and is ranked #145. Since the beginning of the year, the industry has moved +20.4%.

American Resources Corporation and Axalta Coating Systems could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Axalta Coating Systems Ltd. (AXTA) - free report >>

American Resources Corporation (AREC) - free report >>

Published in