Has NexGen Energy (NXE) Outpaced Other Basic Materials Stocks This Year?
For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is NexGen Energy (NXE) 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.
NexGen Energy is a member of our Basic Materials group, which includes 241 different companies and currently sits at #2 in 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. NexGen Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for NXE's full-year earnings has moved 16.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, NXE has moved about 42.8% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 13.5%. This means that NexGen Energy is performing better than its sector in terms of year-to-date returns.
Another stock in the Basic Materials sector, Alpha Metallurgical (AMR), has outperformed the sector so far this year. The stock's year-to-date return is 132.7%.
For Alpha Metallurgical, the consensus EPS estimate for the current year has increased 60.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, NexGen Energy belongs to the Mining - Miscellaneous industry, a group that includes 49 individual companies and currently sits at #47 in the Zacks Industry Rank. Stocks in this group have gained about 28.9% so far this year, so NXE is performing better this group in terms of year-to-date returns. Alpha Metallurgical is also part of the same industry.
Investors interested in the Basic Materials sector may want to keep a close eye on NexGen Energy and Alpha Metallurgical as they attempt to continue their solid performance.
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