For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Newmont (NEM - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Newmont is a member of the Basic Materials sector. This group includes 239 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. NEM is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for NEM's full-year earnings has moved 28.53% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that NEM has returned about 45.25% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -21.30%. This shows that Newmont is outperforming its peers so far this year.
To break things down more, NEM belongs to the Mining - Miscellaneous industry, a group that includes 46 individual companies and currently sits at #25 in the Zacks Industry Rank. On average, this group has lost an average of 15.49% so far this year, meaning that NEM is performing better in terms of year-to-date returns.
Investors with an interest in Basic Materials stocks should continue to track NEM. The stock will be looking to continue its solid performance.