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Is DRDGOLD Limited (DRD) Stock Outpacing Its Basic Materials Peers This Year?

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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. Has DRDGOLD (DRD - 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.

DRDGOLD is one of 232 individual stocks in the Basic Materials sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. 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. DRDGOLD is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for DRD's full-year earnings has moved 41.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that DRD has returned about 71.8% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of 6.5%. This shows that DRDGOLD is outperforming its peers so far this year.

Another Basic Materials stock, which has outperformed the sector so far this year, is Integra Resources Corp. (ITRG - Free Report) . The stock has returned 42.5% year-to-date.

For Integra Resources Corp. the consensus EPS estimate for the current year has increased 110.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, DRDGOLD belongs to the Mining - Gold industry, a group that includes 41 individual companies and currently sits at #151 in the Zacks Industry Rank. This group has gained an average of 35% so far this year, so DRD is performing better in this area.

In contrast, Integra Resources Corp. falls under the Mining - Miscellaneous industry. Currently, this industry has 59 stocks and is ranked #146. Since the beginning of the year, the industry has moved +3.6%.

Investors with an interest in Basic Materials stocks should continue to track DRDGOLD and Integra Resources Corp. These stocks will be looking to continue their solid performance.


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