The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Alamos Gold (AGI) 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.
Alamos Gold is a member of the Basic Materials sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #13. 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. Alamos Gold is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AGI's full-year earnings has moved 24.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that AGI has returned about 44.1% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 11.5% on average. This means that Alamos Gold 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 Hecla Mining (HL). The stock is up 21.6% year-to-date.
For Hecla Mining, the consensus EPS estimate for the current year has increased 26.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Alamos Gold belongs to the Mining - Gold industry, which includes 39 individual stocks and currently sits at #39 in the Zacks Industry Rank. On average, this group has gained an average of 52.7% so far this year, meaning that AGI is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Hecla Mining falls under the Mining - Silver industry. Currently, this industry has 10 stocks and is ranked #21. Since the beginning of the year, the industry has moved +33.7%.
Alamos Gold and Hecla Mining 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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Alamos Gold Inc. (AGI): Free Stock Analysis Report Hecla Mining Company (HL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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