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Is Gold Fields Limited (GFI) Stock Outpacing Its Basic Materials Peers 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. Is Gold Fields (GFI - Free Report) one of those stocks right now? 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.

Gold Fields is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #7. 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 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. Gold Fields is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for GFI's full-year earnings has moved 18.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, GFI has returned 195.3% so far this year. In comparison, Basic Materials companies have returned an average of 18.8%. This means that Gold Fields is performing better than its sector in terms of year-to-date returns.

Another stock in the Basic Materials sector, AngloGold Ashanti (AU - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 200.7%.

The consensus estimate for AngloGold Ashanti's current year EPS has increased 16.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Gold Fields belongs to the Mining - Gold industry, a group that includes 41 individual stocks and currently sits at #31 in the Zacks Industry Rank. On average, this group has gained an average of 108.5% so far this year, meaning that GFI is performing better in terms of year-to-date returns. AngloGold Ashanti is also part of the same industry.

Gold Fields and AngloGold Ashanti 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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