The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Equinox Gold (EQX) 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? One simple way to answer this question is to take a look at the year-to-date performance of EQX and the rest of the Basic Materials group's stocks.
Equinox Gold is one of 237 individual stocks in the Basic Materials sector. Collectively, these companies sit at #4 in 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 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. EQX is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for EQX's full-year earnings has moved 50.69% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, EQX has moved about 65.97% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 5.01% on a year-to-date basis. This means that Equinox Gold is performing better than its sector in terms of year-to-date returns.
To break things down more, EQX belongs to the Mining - Gold industry, a group that includes 33 individual companies and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 44.11% this year, meaning that EQX is performing better in terms of year-to-date returns.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to EQX as it looks to continue its solid performance.
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