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Is Contango ORE, Inc. (CTGO) Stock Outpacing Its Basic Materials Peers This Year?

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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 Contango ORE, Inc. (CTGO - 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.

Contango ORE, Inc. is one of 232 individual stocks in the Basic Materials sector. Collectively, these companies sit at #6 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. Contango ORE, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for CTGO's full-year earnings has moved 23.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, CTGO has gained about 39.5% so far this year. Meanwhile, the Basic Materials sector has returned an average of 4.1% on a year-to-date basis. This means that Contango ORE, Inc. 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 EMX Royalty Corp. (EMX - Free Report) . The stock is up 25.4% year-to-date.

The consensus estimate for EMX Royalty Corp.'s current year EPS has increased 66.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Contango ORE, Inc. belongs to the Mining - Miscellaneous industry, a group that includes 58 individual companies and currently sits at #164 in the Zacks Industry Rank. This group has gained an average of 5.1% so far this year, so CTGO is performing better in this area. EMX Royalty Corp. is also part of the same industry.

Contango ORE, Inc. and EMX Royalty Corp. 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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