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Is Yamana Gold (AUY) Stock Outpacing Its Basic Materials Peers This Year?

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Yamana Gold (AUY) one of those stocks right now? 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.

Yamana Gold is a member of our Basic Materials group, which includes 240 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Yamana Gold is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for AUY's full-year earnings has moved 26.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that AUY has returned about 4.7% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 1.9%. This means that Yamana Gold is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Barrick Gold (GOLD). The stock is up 6.2% year-to-date.

The consensus estimate for Barrick Gold's current year EPS has increased 6.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Yamana Gold belongs to the Mining - Gold industry, a group that includes 40 individual stocks and currently sits at #151 in the Zacks Industry Rank. Stocks in this group have gained about 7% so far this year, so AUY is slightly underperforming its industry this group in terms of year-to-date returns. Barrick Gold is also part of the same industry.

Yamana Gold and Barrick Gold 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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Zacks Investment Research