In This Article:
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Perpetua Resources Corp. (PPTA) 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.
Perpetua Resources Corp. is a member of our Basic Materials group, which includes 235 different companies and currently sits at #12 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. Perpetua Resources Corp. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for PPTA's full-year earnings has moved 0.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, PPTA has returned 201.9% so far this year. At the same time, Basic Materials stocks have lost an average of 3.7%. This shows that Perpetua Resources Corp. is outperforming its peers so far this year.
Sappi Ltd. (SPPJY) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 25%.
For Sappi Ltd. the consensus EPS estimate for the current year has increased 12.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Perpetua Resources Corp. is a member of the Mining - Miscellaneous industry, which includes 60 individual companies and currently sits at #170 in the Zacks Industry Rank. This group has lost an average of 15.6% so far this year, so PPTA is performing better in this area.
In contrast, Sappi Ltd. falls under the Paper and Related Products industry. Currently, this industry has 11 stocks and is ranked #165. Since the beginning of the year, the industry has moved +42.4%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Perpetua Resources Corp. and Sappi Ltd. as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report