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Is Arconic (ARNC) Stock Outpacing Its Basic Materials Peers 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. Arconic 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.

Arconic is one of 237 companies in the Basic Materials group. The Basic Materials group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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

Over the past 90 days, the Zacks Consensus Estimate for ARNC's full-year earnings has moved 9.62% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ARNC has returned about 30.49% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 3.89% on average. This shows that Arconic is outperforming its peers so far this year.

To break things down more, ARNC belongs to the Mining - Non Ferrous industry, a group that includes 10 individual companies and currently sits at #216 in the Zacks Industry Rank. This group has gained an average of 9.76% so far this year, so ARNC is performing better in this area.

Investors in the Basic Materials sector will want to keep a close eye on ARNC as it attempts to continue its solid performance.

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