Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Novagold (NG) 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.
Novagold is a member of the Basic Materials sector. This group includes 242 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Novagold 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 8.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that NG has returned about 202.4% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 24.3% on average. This means that Novagold is outperforming the sector as a whole this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Coeur Mining (CDE). The stock has returned 229% year-to-date.
In Coeur Mining's case, the consensus EPS estimate for the current year increased 20.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Novagold belongs to the Mining - Gold industry, which includes 42 individual stocks and currently sits at #48 in the Zacks Industry Rank. This group has gained an average of 120.1% so far this year, so NG is performing better in this area.
Coeur Mining, however, belongs to the Mining - Non Ferrous industry. Currently, this 10-stock industry is ranked #23. The industry has moved +22.6% so far this year.
Investors with an interest in Basic Materials stocks should continue to track Novagold and Coeur Mining. These stocks will be looking to continue their solid performance.
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Novagold Resources Inc. (NG): Free Stock Analysis Report Coeur Mining, Inc. (CDE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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