Are Basic Materials Stocks Lagging Eldorado Gold (EGO) This Year?

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Eldorado Gold Corporation (EGO) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Eldorado Gold Corporation is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Eldorado Gold Corporation is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for EGO's full-year earnings has moved 64.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, EGO has moved about 15.7% on a year-to-date basis. At the same time, Basic Materials stocks have lost an average of 2.7%. This shows that Eldorado Gold Corporation is outperforming its peers so far this year.

One other Basic Materials stock that has outperformed the sector so far this year is Southern Copper (SCCO). The stock is up 29.5% year-to-date.

The consensus estimate for Southern Copper's current year EPS has increased 22% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Eldorado Gold Corporation belongs to the Mining – Gold industry, a group that includes 40 individual companies and currently sits at #26 in the Zacks Industry Rank. Stocks in this group have gained about 9.6% so far this year, so EGO is performing better this group in terms of year-to-date returns.

On the other hand, Southern Copper belongs to the Mining – Non Ferrous industry. This 12-stock industry is currently ranked #36. The industry has moved +23.7% year to date.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Eldorado Gold Corporation and Southern Copper as they could maintain their solid performance.

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Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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