Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Iamgold (IAG) 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? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Iamgold is a member of the Basic Materials sector. This group includes 233 individual stocks and currently holds a Zacks Sector Rank of #7. 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 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. Iamgold is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for IAG's full-year earnings has moved 30.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, IAG has gained about 44.8% so far this year. In comparison, Basic Materials companies have returned an average of 8.2%. This means that Iamgold is performing better than its sector in terms of year-to-date returns.
Another Basic Materials stock, which has outperformed the sector so far this year, is Novozymes A/S (NVZMY). The stock has returned 26.9% year-to-date.
The consensus estimate for Novozymes A/S's current year EPS has increased 6.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Iamgold belongs to the Mining - Gold industry, a group that includes 39 individual stocks and currently sits at #31 in the Zacks Industry Rank. On average, this group has gained an average of 55.6% so far this year, meaning that IAG is slightly underperforming its industry in terms of year-to-date returns.
Novozymes A/S, however, belongs to the Chemical - Specialty industry. Currently, this 38-stock industry is ranked #148. The industry has moved +3.1% so far this year.
Iamgold and Novozymes A/S could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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Iamgold Corporation (IAG): Free Stock Analysis Report Novozymes A/S (NVZMY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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