Yahoo Finance Is Centerra Gold (CGAU) Stock Outpacing Its Basic Materials Peers This Year?
For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Centerra Gold Inc. (CGAU) one of those stocks right now? 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.
Centerra Gold Inc. is one of 238 companies in the Basic Materials group. The Basic Materials group currently sits at #9 within 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Centerra Gold Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CGAU's full-year earnings has moved 53.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CGAU has returned about 14.6% since the start of the calendar year. At the same time, Basic Materials stocks have lost an average of 4.4%. As we can see, Centerra Gold Inc. is performing better than its sector in the calendar year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Pan American Silver (PAAS). The stock has returned 31.6% year-to-date.
In Pan American Silver's case, the consensus EPS estimate for the current year increased 63.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Centerra Gold Inc. belongs to the Mining - Gold industry, which includes 37 individual stocks and currently sits at #47 in the Zacks Industry Rank. On average, stocks in this group have gained 15.8% this year, meaning that CGAU is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Pan American Silver falls under the Mining - Silver industry. Currently, this industry has 10 stocks and is ranked #13. Since the beginning of the year, the industry has moved +34.5%.
Centerra Gold Inc. and Pan American Silver could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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