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Is BHP Billiton (BBL) Stock Outpacing Its Basic Materials Peers This Year?

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Zacks Equity Research
·2 min read
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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. BHP Billiton (BBL) 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? One simple way to answer this question is to take a look at the year-to-date performance of BBL and the rest of the Basic Materials group's stocks.

BHP Billiton is one of 235 individual stocks in the Basic Materials sector. Collectively, these companies sit at #13 in 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. BBL is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for BBL's full-year earnings has moved 21.43% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, BBL has returned 5.30% so far this year. In comparison, Basic Materials companies have returned an average of 14.94%. This means that BHP Billiton is performing better than its sector in terms of year-to-date returns.

Looking more specifically, BBL belongs to the Mining - Miscellaneous industry, a group that includes 42 individual stocks and currently sits at #197 in the Zacks Industry Rank. On average, stocks in this group have gained 19.86% this year, meaning that BBL is slightly underperforming its industry in terms of year-to-date returns.

BBL 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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