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Is Amerigo Resources (ARREF) Outperforming 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 Amerigo Resources (ARREF - Free Report) one of those stocks right now? 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.

Amerigo Resources is one of 238 individual stocks in the Basic Materials sector. Collectively, these companies sit at #8 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. Amerigo Resources is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ARREF's full-year earnings has moved 6.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, ARREF has returned 7.5% so far this year. Meanwhile, the Basic Materials sector has returned an average of -3.4% on a year-to-date basis. This shows that Amerigo Resources is outperforming its peers so far this year.

Another stock in the Basic Materials sector, HudBay Minerals (HBM - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 46.6%.

In HudBay Minerals' case, the consensus EPS estimate for the current year increased 61.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Amerigo Resources belongs to the Mining - Non Ferrous industry, which includes 12 individual stocks and currently sits at #46 in the Zacks Industry Rank. This group has gained an average of 16% so far this year, so ARREF is slightly underperforming its industry in this area.

HudBay Minerals, however, belongs to the Mining - Miscellaneous industry. Currently, this 60-stock industry is ranked #172. The industry has moved -10.8% so far this year.

Investors interested in the Basic Materials sector may want to keep a close eye on Amerigo Resources and HudBay Minerals as they attempt to continue their solid performance.


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