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Are Basic Materials Stocks Lagging Agnico Eagle Mines (AEM) This Year?
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Agnico Eagle Mines (AEM - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
Agnico Eagle Mines is one of 238 individual stocks in the Basic Materials sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Agnico Eagle Mines is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for AEM's full-year earnings has moved 0.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, AEM has moved about 9.4% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 5.7% on a year-to-date basis. This shows that Agnico Eagle Mines is outperforming its peers so far this year.
AngloGold (AU - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.2%.
The consensus estimate for AngloGold's current year EPS has increased 20.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Agnico Eagle Mines belongs to the Mining - Gold industry, a group that includes 39 individual stocks and currently sits at #74 in the Zacks Industry Rank. Stocks in this group have gained about 12.7% so far this year, so AEM is slightly underperforming its industry this group in terms of year-to-date returns. AngloGold is also part of the same industry.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Agnico Eagle Mines and AngloGold as they could maintain their solid performance.