Is Denison Mine Corp (DNN) Outperforming Other Basic Materials Stocks This Year?
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Denison Mine (DNN) 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.
Denison Mine is one of 237 individual stocks in the Basic Materials sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Denison Mine is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for DNN's full-year earnings has moved 50% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, DNN has gained about 9% so far this year. Meanwhile, the Basic Materials sector has returned an average of -0.5% on a year-to-date basis. This shows that Denison Mine is outperforming its peers so far this year.
One other Basic Materials stock that has outperformed the sector so far this year is Lithium Americas Corp. (LAC). The stock is up 0.2% year-to-date.
For Lithium Americas Corp. the consensus EPS estimate for the current year has increased 67.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Denison Mine belongs to the Mining - Miscellaneous industry, which includes 56 individual stocks and currently sits at #168 in the Zacks Industry Rank. This group has lost an average of 10.8% so far this year, so DNN is performing better in this area. Lithium Americas Corp. is also part of the same industry.
Investors interested in the Basic Materials sector may want to keep a close eye on Denison Mine and Lithium Americas Corp. as they attempt to continue their solid performance.
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Denison Mine Corp (DNN) : Free Stock Analysis Report
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