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Is New Gold (NGD) Outperforming Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is New Gold (NGD - 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.

New Gold is a member of the Basic Materials sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #13. 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. New Gold is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for NGD's full-year earnings has moved 28.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, NGD has moved about 101.2% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 13.9%. As we can see, New Gold is performing better than its sector in the calendar year.

One other Basic Materials stock that has outperformed the sector so far this year is HudBay Minerals (HBM - Free Report) . The stock is up 33.7% year-to-date.

In HudBay Minerals' case, the consensus EPS estimate for the current year increased 21.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, New Gold belongs to the Mining - Gold industry, which includes 39 individual stocks and currently sits at #52 in the Zacks Industry Rank. On average, this group has gained an average of 55.9% so far this year, meaning that NGD is performing better in terms of year-to-date returns.

In contrast, HudBay Minerals falls under the Mining - Miscellaneous industry. Currently, this industry has 64 stocks and is ranked #157. Since the beginning of the year, the industry has moved +15.2%.

Investors interested in the Basic Materials sector may want to keep a close eye on New Gold and HudBay Minerals as they attempt to continue their solid performance.


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