Is Nexa Resources (NEXA) Outperforming Other Basic Materials Stocks This Year?

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Nexa Resources S.A. (NEXA) been one of those stocks this year? 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.

Nexa Resources S.A. is one of 254 individual stocks in the Basic Materials sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Nexa Resources S.A. is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for NEXA's full-year earnings has moved 58.3% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, NEXA has moved about 3.8% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 3% on a year-to-date basis. This means that Nexa Resources S.A. is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Denison Mine (DNN). The stock is up 25.2% year-to-date.

Over the past three months, Denison Mine's consensus EPS estimate for the current year has increased 16%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Nexa Resources S.A. is a member of the Mining - Miscellaneous industry, which includes 73 individual companies and currently sits at #77 in the Zacks Industry Rank. This group has gained an average of 2.6% so far this year, so NEXA is performing better in this area. Denison Mine is also part of the same industry.

Investors with an interest in Basic Materials stocks should continue to track Nexa Resources S.A. and Denison Mine. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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