The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. AngloGold Ashanti (AU) 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.
AngloGold Ashanti is a member of our Basic Materials group, which includes 237 different companies and currently sits at #16 in the Zacks Sector Rank. 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 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. AU is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AU's full-year earnings has moved 34.67% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, AU has returned 23.35% so far this year. In comparison, Basic Materials companies have returned an average of 10.48%. This means that AngloGold Ashanti is outperforming the sector as a whole this year.
Looking more specifically, AU belongs to the Mining - Gold industry, which includes 31 individual stocks and currently sits at #147 in the Zacks Industry Rank. On average, this group has gained an average of 20.44% so far this year, meaning that AU is performing better in terms of year-to-date returns.
AU 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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