For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Coeur Mining (CDE) 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.
Coeur Mining is one of 240 companies in the Basic Materials group. The Basic Materials group currently sits at #7 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 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. Coeur Mining is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CDE's full-year earnings has moved 16.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, CDE has moved about 231.8% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 23.5% on average. This shows that Coeur Mining is outperforming its peers so far this year.
Novagold (NG) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 156.2%.
Over the past three months, Novagold's consensus EPS estimate for the current year has increased 8.3%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Coeur Mining belongs to the Mining - Non Ferrous industry, which includes 10 individual stocks and currently sits at #14 in the Zacks Industry Rank. Stocks in this group have gained about 24.1% so far this year, so CDE is performing better this group in terms of year-to-date returns.
In contrast, Novagold falls under the Mining - Gold industry. Currently, this industry has 41 stocks and is ranked #28. Since the beginning of the year, the industry has moved +118.2%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Coeur Mining and Novagold as they could maintain their solid performance.
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Coeur Mining, Inc. (CDE): Free Stock Analysis Report Novagold Resources Inc. (NG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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