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Has Rio Tinto (RIO) Outpaced Other Basic Materials Stocks This Year?

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Investors focused on the Basic Materials space have likely heard of Rio Tinto (RIO - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? 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.

Rio Tinto is a member of our Basic Materials group, which includes 248 different companies and currently sits at #11 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. RIO is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for RIO's full-year earnings has moved 1.09% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, RIO has moved about 26.05% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 14.59%. This shows that Rio Tinto is outperforming its peers so far this year.

Looking more specifically, RIO belongs to the Mining - Miscellaneous industry, which includes 42 individual stocks and currently sits at #75 in the Zacks Industry Rank. Stocks in this group have gained about 22.99% so far this year, so RIO is performing better this group in terms of year-to-date returns.

RIO will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.


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