Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has AngloGold Ashanti (AU) been one of those stocks this year? 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 the Basic Materials sector. This group includes 234 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AngloGold Ashanti is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for AU's full-year earnings has moved 39.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, AU has returned 22.3% so far this year. In comparison, Basic Materials companies have returned an average of -7%. This means that AngloGold Ashanti is performing better than its sector in terms of year-to-date returns.
International Paper (IP) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.7%.
Over the past three months, International Paper's consensus EPS estimate for the current year has increased 10.4%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, AngloGold Ashanti belongs to the Mining - Gold industry, a group that includes 40 individual companies and currently sits at #88 in the Zacks Industry Rank. On average, stocks in this group have gained 20.3% this year, meaning that AU is performing better in terms of year-to-date returns.
In contrast, International Paper falls under the Paper and Related Products industry. Currently, this industry has 11 stocks and is ranked #23. Since the beginning of the year, the industry has moved +46.9%.
Investors with an interest in Basic Materials stocks should continue to track AngloGold Ashanti and International Paper. These stocks will be looking to continue their solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
