Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. AngloGold Ashanti (AU) 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.
AngloGold Ashanti is a member of our Basic Materials group, which includes 238 different companies and currently sits at #14 in the Zacks Sector Rank. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. AngloGold Ashanti is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AU's full-year earnings has moved 48.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, AU has moved about 148.1% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 14.5%. As we can see, AngloGold Ashanti is performing better than its sector in the calendar year.
One other Basic Materials stock that has outperformed the sector so far this year is Gold Fields (GFI). The stock is up 137.7% year-to-date.
For Gold Fields, the consensus EPS estimate for the current year has increased 29.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, AngloGold Ashanti belongs to the Mining - Gold industry, a group that includes 39 individual stocks and currently sits at #46 in the Zacks Industry Rank. Stocks in this group have gained about 73.6% so far this year, so AU is performing better this group in terms of year-to-date returns. Gold Fields is also part of the same industry.
Investors with an interest in Basic Materials stocks should continue to track AngloGold Ashanti and Gold Fields. These stocks will be looking to continue their solid performance.
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AngloGold Ashanti PLC (AU): Free Stock Analysis Report Gold Fields Limited (GFI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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