Is Glencore (GLNCY) Stock Outpacing Its Basic Materials Peers This Year?

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Glencore PLC (GLNCY) been one of those stocks this year? 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.

Glencore PLC is one of 255 companies in the Basic Materials group. The Basic Materials group currently sits at #1 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 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. Glencore PLC is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for GLNCY's full-year earnings has moved 33.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that GLNCY has returned about 28.9% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of 17.3%. As we can see, Glencore PLC is performing better than its sector in the calendar year.

OR Royalties (OR) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 21.5%.

Over the past three months, OR Royalties' consensus EPS estimate for the current year has increased 31.5%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Glencore PLC belongs to the Mining - Miscellaneous industry, a group that includes 73 individual stocks and currently sits at #53 in the Zacks Industry Rank. On average, this group has gained an average of 20.5% so far this year, meaning that GLNCY is performing better in terms of year-to-date returns. OR Royalties is also part of the same industry.

Glencore PLC and OR Royalties 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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This article originally published on Zacks Investment Research (zacks.com).

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