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Is Lithium Americas (LAC) Stock Outpacing Its Basic Materials Peers This Year?

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Investors focused on the Basic Materials space have likely heard of Lithium Americas (LAC - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

Lithium Americas is one of 243 companies in the Basic Materials group. The Basic Materials group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. LAC is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for LAC's full-year earnings has moved 25.23% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, LAC has gained about 25.87% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 7.59% on average. As we can see, Lithium Americas is performing better than its sector in the calendar year.

Looking more specifically, LAC belongs to the Chemical - Diversified industry, which includes 42 individual stocks and currently sits at #219 in the Zacks Industry Rank. On average, stocks in this group have lost 9.76% this year, meaning that LAC is performing better in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to LAC as it looks to continue its solid performance.


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