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Has DRDGOLD Limited (DRD) Outpaced Other Basic Materials Stocks 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 DRDGOLD (DRD - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

DRDGOLD is a member of the Basic Materials sector. This group includes 236 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. DRDGOLD is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DRD's full-year earnings has moved 57.8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, DRD has gained about 219.2% so far this year. In comparison, Basic Materials companies have returned an average of 23.6%. 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 First Quantum Minerals (FQVLF - Free Report) . The stock has returned 75.7% year-to-date.

In First Quantum Minerals' case, the consensus EPS estimate for the current year increased 79.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, DRDGOLD belongs to the Mining - Gold industry, which includes 39 individual stocks and currently sits at #67 in the Zacks Industry Rank. On average, stocks in this group have gained 119.1% this year, meaning that DRD is performing better in terms of year-to-date returns.

In contrast, First Quantum Minerals falls under the Mining - Non Ferrous industry. Currently, this industry has 11 stocks and is ranked #89. Since the beginning of the year, the industry has moved +15.8%.

Investors interested in the Basic Materials sector may want to keep a close eye on DRDGOLD and First Quantum Minerals as they attempt to continue their solid performance.


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