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Are Basic Materials Stocks Lagging Agnico Eagle Mines (AEM) 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. 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? 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 a member of the Basic Materials sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #10. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. 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 24.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, AEM has returned 60.8% so far this year. At the same time, Basic Materials stocks have gained an average of 14.1%. This means that Agnico Eagle Mines is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Franco-Nevada (FNV - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 38.3%.

For Franco-Nevada, the consensus EPS estimate for the current year has increased 17.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Agnico Eagle Mines belongs to the Mining - Gold industry, a group that includes 39 individual companies and currently sits at #31 in the Zacks Industry Rank. On average, stocks in this group have gained 55.9% this year, meaning that AEM is performing better in terms of year-to-date returns. Franco-Nevada is also part of the same industry.

Investors interested in the Basic Materials sector may want to keep a close eye on Agnico Eagle Mines and Franco-Nevada as they attempt to continue their solid performance.


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