Investors focused on the Basic Materials space have likely heard of Sibanye Gold (SBSW), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of SBSW and the rest of the Basic Materials group's stocks.
Sibanye Gold is one of 245 companies in the Basic Materials group. The Basic Materials group currently sits at #3 within 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. SBSW is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for SBSW's full-year earnings has moved 11.11% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that SBSW has returned about 22.84% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 20.10%. This means that Sibanye Gold is outperforming the sector as a whole this year.
Looking more specifically, SBSW belongs to the Mining – Miscellaneous industry, which includes 46 individual stocks and currently sits at #116 in the Zacks Industry Rank. This group has gained an average of 29.61% so far this year, so SBSW is slightly underperforming its industry in this area.
Investors in the Basic Materials sector will want to keep a close eye on SBSW as it attempts to continue its solid performance.
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