The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Kinross Gold (KGC) 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? 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 one of 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #2 in 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. KGC is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for KGC’s full-year earnings has moved 20.16% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the latest available data, KGC has gained about 83.75% so far this year. At the same time, Basic Materials stocks have gained an average of 4.68%. As we can see, Kinross Gold is performing better than its sector in the calendar year.
To break things down more, KGC belongs to the Mining – Gold industry, a group that includes 31 individual companies and currently sits at #84 in the Zacks Industry Rank. On average, this group has gained an average of 53.75% so far this year, meaning that KGC is performing better in terms of year-to-date returns.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to KGC as it looks to continue its solid performance.
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