Is Piedmont Lithium Inc. - Sponsored ADR (PLL) 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 Piedmont Lithium Inc. - Sponsored ADR (PLL) 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.

Piedmont Lithium Inc. - Sponsored ADR is a member of the Basic Materials sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #12. 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. Piedmont Lithium Inc. - Sponsored ADR is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for PLL's full-year earnings has moved 4.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, PLL has returned 17.5% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 13% on average. This means that Piedmont Lithium Inc. - Sponsored ADR is outperforming the sector as a whole this year.

Another Basic Materials stock, which has outperformed the sector so far this year, is SSR Mining (SSRM). The stock has returned 123.6% year-to-date.

The consensus estimate for SSR Mining's current year EPS has increased 68% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Piedmont Lithium Inc. - Sponsored ADR belongs to the Mining - Miscellaneous industry, which includes 64 individual stocks and currently sits at #161 in the Zacks Industry Rank. Stocks in this group have gained about 17.8% so far this year, so PLL is slightly underperforming its industry this group in terms of year-to-date returns. SSR Mining is also part of the same industry.

Investors with an interest in Basic Materials stocks should continue to track Piedmont Lithium Inc. - Sponsored ADR and SSR Mining. 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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