Is Agnico Eagle Mines (AEM) Stock Outpacing Its Basic Materials Peers This Year?

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Agnico Eagle Mines (AEM) one of those stocks right now? 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.

Agnico Eagle Mines is a member of our Basic Materials group, which includes 240 different companies and currently sits at #6 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 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. Agnico Eagle Mines is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for AEM's full-year earnings has moved 42.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, AEM has moved about 23.5% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 0.6% on average. This means that Agnico Eagle Mines is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is AngloGold Ashanti (AU). The stock is up 30% year-to-date.

In AngloGold Ashanti's case, the consensus EPS estimate for the current year increased 77.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Agnico Eagle Mines belongs to the Mining - Gold industry, a group that includes 39 individual stocks and currently sits at #17 in the Zacks Industry Rank. This group has gained an average of 14% so far this year, so AEM is performing better in this area. AngloGold Ashanti is also part of the same industry.

Investors with an interest in Basic Materials stocks should continue to track Agnico Eagle Mines and AngloGold Ashanti. 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.

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