Is Gold Resource (GORO) Outperforming Other Basic Materials Stocks This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Gold Resource (GORO) one of those stocks right now? 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 246 different companies and currently sits at #4 in the Zacks Sector Rank. 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. Gold Resource is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for GORO's full-year earnings has moved 41.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, GORO has returned 13.5% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 9.8% on average. As we can see, Gold Resource is performing better than its sector in the calendar year.
Another stock in the Basic Materials sector, Sibanye Gold Limited (SBSW), has outperformed the sector so far this year. The stock's year-to-date return is 21.2%.
The consensus estimate for Sibanye Gold Limited's current year EPS has increased 27.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Gold Resource is a member of the Mining - Gold industry, which includes 39 individual companies and currently sits at #97 in the Zacks Industry Rank. On average, this group has lost an average of 10.9% so far this year, meaning that GORO is performing better in terms of year-to-date returns.
In contrast, Sibanye Gold Limited falls under the Mining - Miscellaneous industry. Currently, this industry has 51 stocks and is ranked #102. Since the beginning of the year, the industry has moved +9.8%.
Investors with an interest in Basic Materials stocks should continue to track Gold Resource and Sibanye Gold Limited. These stocks will be looking to continue their solid performance.
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