Back to top

Image: Bigstock

Is Newmont Goldcorp (NEM) Stock Outpacing Its Basic Materials Peers This Year?

Read MoreHide Full Article

Investors focused on the Basic Materials space have likely heard of Newmont Goldcorp (NEM), but is the stock performing well in comparison to the rest of its sector peers? 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.

Newmont Goldcorp is a member of the Basic Materials sector. This group includes 243 individual stocks and currently holds a Zacks Sector Rank of #13. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. NEM is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for NEM's full-year earnings has moved 12.36% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that NEM has returned about 20.48% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -16.95%. As we can see, Newmont Goldcorp is performing better than its sector in the calendar year.

To break things down more, NEM belongs to the Mining - Miscellaneous industry, a group that includes 43 individual companies and currently sits at #81 in the Zacks Industry Rank. This group has lost an average of 15.61% so far this year, so NEM is performing better in this area.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to NEM as it looks to continue its solid performance.

Published in