Are Basic Materials Stocks Lagging Bunge Limited (BG) This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Bunge (BG) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Bunge is a member of the Basic Materials sector. This group includes 239 individual stocks and currently holds a Zacks Sector Rank of #16. 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 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. Bunge is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BG's full-year earnings has moved 5.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that BG has returned about 13.1% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 5.4%. This means that Bunge is outperforming the sector as a whole this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Carpenter Technology (CRS). The stock has returned 59.1% year-to-date.
In Carpenter Technology's case, the consensus EPS estimate for the current year increased 18.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Bunge is a member of the Agriculture - Products industry, which includes 7 individual companies and currently sits at #178 in the Zacks Industry Rank. On average, stocks in this group have gained 11.5% this year, meaning that BG is performing better in terms of year-to-date returns.
On the other hand, Carpenter Technology belongs to the Steel - Speciality industry. This 4-stock industry is currently ranked #27. The industry has moved +44.8% year to date.
Bunge and Carpenter Technology could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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