Is Gold Resource (GORO) Outperforming Other Basic Materials Stocks This Year?
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Gold Resource (GORO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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 Resource is a member of our Basic Materials group, which includes 241 different companies and currently sits at #4 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. Gold Resource is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for GORO's full-year earnings has moved 75% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, GORO has returned 18.6% so far this year. At the same time, Basic Materials stocks have lost an average of 3.4%. This means that Gold Resource is performing better than its sector in terms of year-to-date returns.
Another stock in the Basic Materials sector, ICL Group (ICL), has outperformed the sector so far this year. The stock's year-to-date return is 6.2%.
For ICL Group , the consensus EPS estimate for the current year has increased 84.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Gold Resource belongs to the Mining - Gold industry, a group that includes 38 individual companies and currently sits at #91 in the Zacks Industry Rank. Stocks in this group have lost about 5.1% so far this year, so GORO is performing better this group in terms of year-to-date returns.
In contrast, ICL Group falls under the Chemical - Specialty industry. Currently, this industry has 33 stocks and is ranked #97. Since the beginning of the year, the industry has moved -23.6%.
Investors interested in the Basic Materials sector may want to keep a close eye on Gold Resource and ICL Group as they attempt to continue their solid performance.
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