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Is Agnico Eagle Mines (AEM) Stock Outpacing Its Basic Materials Peers 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. Agnico Eagle Mines (AEM - Free Report) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Agnico Eagle Mines is one of 248 individual stocks in the Basic Materials sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. AEM is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for AEM's full-year earnings has moved 56.54% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AEM has returned about 58.19% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 3.73% on average. This shows that Agnico Eagle Mines is outperforming its peers so far this year.

Looking more specifically, AEM belongs to the Mining - Gold industry, a group that includes 32 individual stocks and currently sits at #9 in the Zacks Industry Rank. This group has gained an average of 56.23% so far this year, so AEM is performing better in this area.

Investors in the Basic Materials sector will want to keep a close eye on AEM as it attempts to continue its solid performance.


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