IInvestors interested in basic materials stocks should always look for the best performing companies in the cluster. Is Teck Resources Ltd (TECK) one of those stocks right now? A quick look at the company’s year-to-date performance relative to the rest of the basic materials sector should help answer that question.
Teck Resources Ltd is part of the basic materials sector. This group comprises 240 individual stocks and currently holds a Zacks Sector Rank of #2. Zacks Sector Rankings assess the strength of our 16 individual sector groups by measuring the average Zacks Rank of individual stocks within the groups.
The Zacks ranking emphasizes earnings estimates and estimate revisions to find stocks with improved earnings prospects. This system has a long track record of success, and these stocks tend to be on track to beat the market over the next one to three months. Teck Resources Ltd currently sports a Zacks ranking of #1 (Strong Buy).
Over the past three months, the Zacks consensus estimate for TEAK’s annual earnings rose 73.4%. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the latest available data, TECK has gained around 36.3% so far this year. Meanwhile, shares of the basic materials group gained around 4.6% on average. This shows that Teck Resources Ltd is outperforming its peers so far this year.
Another stock in the basic materials sector, Anglo American (NGLOY), has outperformed the sector so far this year. The return on the share since the beginning of the year is 7.5%.
In the case of Anglo American, the current-year EPS consensus estimate has risen 45.3% over the past three months. The stock currently has a Zacks rank #2 (buy).
Breaking things down in more detail, Teck Resources Ltd is a member of the Mining – Miscellaneous industry, which comprises 49 individual companies and is currently ranked 43rd in the Zacks industry rankings. Shares in this group have gained about 14.4% so far this year, so TECK is doing better in this group in terms of year-to-date returns. Anglo American is also part of the same industry.
Going forward, investors interested in basic materials stocks should continue to pay close attention to Teck Resources Ltd and Anglo American as they may maintain their strong performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.