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 Kinross Gold (KGC) 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.
Kinross Gold is a member of our Basic Materials group, which includes 242 different companies and currently sits at #14 in the Zacks Sector Rank. 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 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. KGC is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for KGC's full-year earnings has moved 10.85% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that KGC has returned about 11.60% since the start of the calendar year. At the same time, Basic Materials stocks have lost an average of 14.90%. This means that Kinross Gold is performing better than its sector in terms of year-to-date returns.
Looking more specifically, KGC belongs to the Mining - Gold industry, a group that includes 34 individual stocks and currently sits at #66 in the Zacks Industry Rank. This group has lost an average of 5.34% so far this year, so KGC is performing better in this area.
Investors in the Basic Materials sector will want to keep a close eye on KGC as it attempts to continue its solid performance.