Rio Tinto Group's (ASX:RIO) shares have outperformed over the past three months, gaining 38% while the global market ETF EFA has risen 9%, Argus Research said in a note on Tuesday.

The firm's shares also outperformed the index over the past year, advancing 64% while the global market ETF EFA climbed 27%. Its current estimated dividend yield of around 5% is also attractive. However, its earnings trends can be erratic, given the volatile environment in the global commodity markets, per the note.

The firm strengthened its operating performance and balance sheet in recent years by cutting costs and selling noncore assets.

The investment firm has a buy rating on Rio Tinto.