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Is Kirkland Lake Gold (KL) Outperforming Other Basic Materials Stocks This Year?

Zacks Equity Research

Investors focused on the Basic Materials space have likely heard of Kirkland Lake Gold (KL), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of KL and the rest of the Basic Materials group's stocks.

Kirkland Lake Gold is one of 248 companies in the Basic Materials group. The Basic Materials group currently sits at #13 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 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. KL is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for KL's full-year earnings has moved 7.89% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, KL has gained about 81.37% so far this year. In comparison, Basic Materials companies have returned an average of 1.89%. This shows that Kirkland Lake Gold is outperforming its peers so far this year.

Looking more specifically, KL belongs to the Mining - Gold industry, a group that includes 32 individual stocks and currently sits at #11 in the Zacks Industry Rank. On average, this group has gained an average of 51.05% so far this year, meaning that KL is performing better in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to KL as it looks to continue its solid performance.


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