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Are Basic Materials Stocks Lagging Agnico Eagle Mines (AEM) This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Agnico Eagle Mines (AEM - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.

Agnico Eagle Mines is a member of the Basic Materials sector. This group includes 233 individual stocks and currently holds a Zacks Sector Rank of #7. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Agnico Eagle Mines is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AEM's full-year earnings has moved 30.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, AEM has moved about 56.1% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 9.4%. This shows that Agnico Eagle Mines is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Dundee Precious Metals Inc. (DPMLF - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 76.2%.

The consensus estimate for Dundee Precious Metals Inc.'s current year EPS has increased 29.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Agnico Eagle Mines belongs to the Mining - Gold industry, which includes 39 individual stocks and currently sits at #32 in the Zacks Industry Rank. On average, stocks in this group have gained 53.7% this year, meaning that AEM is performing better in terms of year-to-date returns. Dundee Precious Metals Inc. is also part of the same industry.

Agnico Eagle Mines and Dundee Precious Metals Inc. could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


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