The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Lundin Mining (LUNMF) 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.
Lundin Mining is one of 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Lundin Mining is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for LUNMF's full-year earnings has moved 8.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, LUNMF has moved about 17.8% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have lost about 4.1% on average. This means that Lundin Mining is performing better than its sector in terms of year-to-date returns.
Another stock in the Basic Materials sector, Agnico Eagle Mines (AEM), has outperformed the sector so far this year. The stock's year-to-date return is 47.4%.
The consensus estimate for Agnico Eagle Mines' current year EPS has increased 13% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Lundin Mining is a member of the Mining - Non Ferrous industry, which includes 12 individual companies and currently sits at #60 in the Zacks Industry Rank. On average, this group has gained an average of 14.5% so far this year, meaning that LUNMF is performing better in terms of year-to-date returns.
In contrast, Agnico Eagle Mines falls under the Mining - Gold industry. Currently, this industry has 37 stocks and is ranked #92. Since the beginning of the year, the industry has moved +28.8%.
Investors with an interest in Basic Materials stocks should continue to track Lundin Mining and Agnico Eagle Mines. These stocks will be looking to continue their solid performance.
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