Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Eldorado Gold Corporation (EGO) 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.
Eldorado Gold Corporation is one of 233 individual stocks in the Basic Materials sector. Collectively, these companies sit at #8 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 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. Eldorado Gold Corporation is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for EGO's full-year earnings has moved 10.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, EGO has returned 42.1% so far this year. At the same time, Basic Materials stocks have gained an average of 9%. This means that Eldorado Gold Corporation is performing better than its sector in terms of year-to-date returns.
One other Basic Materials stock that has outperformed the sector so far this year is Allegheny Technologies (ATI). The stock is up 52.6% year-to-date.
The consensus estimate for Allegheny Technologies' current year EPS has increased 4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Eldorado Gold Corporation belongs to the Mining - Gold industry, which includes 39 individual stocks and currently sits at #31 in the Zacks Industry Rank. Stocks in this group have gained about 49% so far this year, so EGO is slightly underperforming its industry this group in terms of year-to-date returns.
On the other hand, Allegheny Technologies belongs to the Steel - Speciality industry. This 5-stock industry is currently ranked #57. The industry has moved +41.5% year to date.
Investors with an interest in Basic Materials stocks should continue to track Eldorado Gold Corporation and Allegheny Technologies. These stocks will be looking to continue their solid performance.
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Eldorado Gold Corporation (EGO): Free Stock Analysis Report ATI Inc. (ATI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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