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Are Basic Materials Stocks Lagging Centerra Gold (CGAU) This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Centerra Gold Inc. (CGAU - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Centerra Gold Inc. is one of 240 companies in the Basic Materials group. The Basic Materials group currently sits at #5 within the Zacks Sector Rank. 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. Centerra Gold Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CGAU's full-year earnings has moved 96.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, CGAU has returned 17.1% so far this year. Meanwhile, the Basic Materials sector has returned an average of 0.7% on a year-to-date basis. As we can see, Centerra Gold Inc. is performing better than its sector in the calendar year.

Another stock in the Basic Materials sector, Mercer International (MERC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 9.2%.

The consensus estimate for Mercer International's current year EPS has increased 11.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Centerra Gold Inc. belongs to the Mining - Gold industry, which includes 39 individual stocks and currently sits at #22 in the Zacks Industry Rank. On average, this group has gained an average of 15.2% so far this year, meaning that CGAU is performing better in terms of year-to-date returns.

On the other hand, Mercer International belongs to the Paper and Related Products industry. This 12-stock industry is currently ranked #13. The industry has moved +9.4% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Centerra Gold Inc. and Mercer International as they attempt to continue their solid performance.


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