The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Gold Fields (GFI) 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? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Gold Fields is one of 243 companies in the Basic Materials group. The Basic Materials group currently sits at #4 within 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 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. Gold Fields is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for GFI's full-year earnings has moved 15.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that GFI has returned about 11.7% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 2% on average. This shows that Gold Fields is outperforming its peers so far this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is BHP (BHP). The stock has returned 13.1% year-to-date.
In BHP's case, the consensus EPS estimate for the current year increased 10% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Gold Fields belongs to the Mining – Gold industry, a group that includes 37 individual stocks and currently sits at #146 in the Zacks Industry Rank. Stocks in this group have gained about 5% so far this year, so GFI is performing better this group in terms of year-to-date returns.
BHP, however, belongs to the Mining – Miscellaneous industry. Currently, this 50-stock industry is ranked #92. The industry has moved +10.6% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Gold Fields and BHP as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gold Fields Limited (GFI) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research