Back to top

Image: Bigstock

Is Gold Royalty (GROY) Outperforming Other Basic Materials Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Gold Royalty Corp. (GROY - Free Report) been one of those stocks this year? 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.

Gold Royalty Corp. is a member of the Basic Materials sector. This group includes 233 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Gold Royalty Corp. is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for GROY's full-year earnings has moved 40% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, GROY has returned 23.1% so far this year. At the same time, Basic Materials stocks have gained an average of 7.4%. This means that Gold Royalty Corp. is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Orla Mining Ltd. (ORLA - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 24.7%.

In Orla Mining Ltd.'s case, the consensus EPS estimate for the current year increased 76.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Gold Royalty Corp. belongs to the Mining - Gold industry, a group that includes 40 individual companies and currently sits at #79 in the Zacks Industry Rank. Stocks in this group have gained about 22.2% so far this year, so GROY is performing better this group in terms of year-to-date returns. Orla Mining Ltd. is also part of the same industry.

Gold Royalty Corp. and Orla Mining Ltd. could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Orla Mining Ltd. (ORLA) - free report >>

Gold Royalty Corp. (GROY) - free report >>

Published in