The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Yamana Gold (AUY) 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? One simple way to answer this question is to take a look at the year-to-date performance of AUY and the rest of the Basic Materials group's stocks.
Yamana Gold is a member of the Basic Materials sector. This group includes 247 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. AUY is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for AUY's full-year earnings has moved 76.92% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, AUY has returned 57.20% so far this year. In comparison, Basic Materials companies have returned an average of 12.46%. This means that Yamana Gold is outperforming the sector as a whole this year.
Breaking things down more, AUY is a member of the Mining - Gold industry, which includes 35 individual companies and currently sits at #46 in the Zacks Industry Rank. This group has gained an average of 45.53% so far this year, so AUY is performing better in this area.
AUY will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.
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