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Is DRDGOLD (DRD) 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. Is DRDGOLD (DRD - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

DRDGOLD is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #8. 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 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. DRD is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for DRD's full-year earnings has moved 307.69% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, DRD has returned 14.42% so far this year. At the same time, Basic Materials stocks have lost an average of 33.09%. This shows that DRDGOLD is outperforming its peers so far this year.

To break things down more, DRD belongs to the Mining - Gold industry, a group that includes 30 individual companies and currently sits at #16 in the Zacks Industry Rank. This group has lost an average of 9.70% so far this year, so DRD is performing better in this area.

DRD will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.


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