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Is Novagold Resources (NG) Outperforming Other Basic Materials Stocks 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. Novagold Resources (NG - 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? One simple way to answer this question is to take a look at the year-to-date performance of NG and the rest of the Basic Materials group's stocks.

Novagold Resources 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 includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. NG is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for NG's full-year earnings has moved 27.27% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, NG has moved about 35.27% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of -15.33%. This shows that Novagold Resources is outperforming its peers so far this year.

Looking more specifically, NG belongs to the Mining - Gold industry, which includes 30 individual stocks and currently sits at #7 in the Zacks Industry Rank. On average, this group has gained an average of 24.72% so far this year, meaning that NG is performing better in terms of year-to-date returns.

Investors in the Basic Materials sector will want to keep a close eye on NG as it attempts to continue its solid performance.


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