Investors interested in Basic Materials stocks should always look for the best performing companies in the group. Barrick gold (GOLD – Free Report) is a stock that could certainly catch the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let’s take a closer look at the stock’s performance this year to find out.
Barrick Gold is a member of our Basic Materials group, which includes 236 different companies and currently sits at #15 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed 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 prospects. This system has a long track record and these stocks are typically on track to beat the market over the next one to three months. Barrick Gold currently has a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for GOLD’s full-year earnings has moved 17.9% higher. This is a sign of improving analyst sentiment and a positive trend in the earnings outlook.
According to our latest data, GOLD is up about 14.4% this year. Meanwhile, the Basic Materials sector has returned an average of 0.3% on an annual basis. This means that Barrick Gold is outperforming its sector in terms of year-to-date returns.
Another Basic Materials stock that has outperformed the sector so far this year is Blachem (BCPC – Free report). The stock is up 16.8% this year.
Blachem’s consensus EPS estimate for this year has risen 2.7% over the past three months. The stock currently carries a Zacks Rank #2 (Buy).
Looking more specifically, Barrick Gold belongs to the Mining Gold sector, a group that includes 37 individual stocks and currently sits at #62 in the Zacks Industry Rank. This group has gained an average of 31.5% so far this year, so GOLD is slightly underperforming its sector in this area.
However, Blachem belongs to the Chemical – Specialty Industry. Currently, this 33-stock sector is ranked 208th. The sector is up -15.8% so far this year.
Investors interested in the basic materials sector may want to keep a close eye on Barrick Gold and Blachem as they look to continue their solid performance.