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Is Gold Fields Limited (GFI) Outperforming Other Basic Materials Stocks This Year?

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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 Gold Fields (GFI - Free Report) been one of those stocks this year? 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 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 in 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 #1 (Strong Buy).

The Zacks Consensus Estimate for GFI's full-year earnings has moved 5.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, GFI has moved about 68.1% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 1.8% on average. This means that Gold Fields is performing better than its sector in terms of year-to-date returns.

Another Basic Materials stock, which has outperformed the sector so far this year, is Nucor (NUE - Free Report) . The stock has returned 6.1% year-to-date.

Over the past three months, Nucor's consensus EPS estimate for the current year has increased 32.7%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Gold Fields is a member of the Mining - Gold industry, which includes 37 individual companies and currently sits at #55 in the Zacks Industry Rank. On average, stocks in this group have gained 28.5% this year, meaning that GFI is performing better in terms of year-to-date returns.

Nucor, however, belongs to the Steel - Producers industry. Currently, this 24-stock industry is ranked #39. The industry has moved +9.5% so far this year.

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


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