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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Perpetua Resources Corp. (PPTA) 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? 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.
Perpetua Resources Corp. is a member of our Basic Materials group, which includes 235 different companies and currently sits at #9 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. Perpetua Resources Corp. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PPTA's full-year earnings has moved 25% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that PPTA has returned about 13.4% since the start of the calendar year. At the same time, Basic Materials stocks have lost an average of 12.1%. This means that Perpetua Resources Corp. is outperforming the sector as a whole this year.
One other Basic Materials stock that has outperformed the sector so far this year is Royal Gold (RGLD). The stock is up 2.2% year-to-date.
The consensus estimate for Royal Gold's current year EPS has increased 5.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Perpetua Resources Corp. belongs to the Mining - Miscellaneous industry, a group that includes 60 individual stocks and currently sits at #142 in the Zacks Industry Rank. Stocks in this group have lost about 22.2% so far this year, so PPTA is performing better this group in terms of year-to-date returns.
Royal Gold, however, belongs to the Mining - Gold industry. Currently, this 40-stock industry is ranked #136. The industry has moved +13.6% so far this year.
Perpetua Resources Corp. and Royal 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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