Is Denison Mine Corp (DNN) Stock Outpacing Its Basic Materials Peers This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Denison Mine (DNN) one of those stocks right now? 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.
Denison Mine is one of 231 companies in the Basic Materials group. The Basic Materials group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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 #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DNN's full-year earnings has moved 33.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, DNN has gained about 31.3% so far this year. Meanwhile, the Basic Materials sector has returned an average of -1.1% on a year-to-date basis. This means that Denison Mine 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 Kinross Gold (KGC). The stock has returned 30.6% year-to-date.
Over the past three months, Kinross Gold's consensus EPS estimate for the current year has increased 17.2%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Denison Mine belongs to the Mining - Miscellaneous industry, a group that includes 54 individual companies and currently sits at #144 in the Zacks Industry Rank. On average, this group has gained an average of 0.7% so far this year, meaning that DNN is performing better in terms of year-to-date returns.
Kinross Gold, however, belongs to the Mining - Gold industry. Currently, this 40-stock industry is ranked #95. The industry has moved +7.3% so far this year.
Denison Mine and Kinross Gold 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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