For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Kirkland Lake Gold (KL - Free Report) one of those stocks right now? 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.
Kirkland Lake Gold is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #5 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. KL is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for KL's full-year earnings has moved 10.91% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, KL has moved about 17.52% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 1.49% on a year-to-date basis. This means that Kirkland Lake Gold is performing better than its sector in terms of year-to-date returns.
To break things down more, KL belongs to the Mining - Gold industry, a group that includes 32 individual companies and currently sits at #54 in the Zacks Industry Rank. On average, this group has gained an average of 44.38% so far this year, meaning that KL is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Basic Materials sector will want to keep a close eye on KL as it attempts to continue its solid performance.