Is Perpetua Resources (PPTA) Stock Outpacing Its Basic Materials Peers This Year?

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Perpetua Resources Corp. (PPTA) 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? 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.

Perpetua Resources Corp. is a member of our Basic Materials group, which includes 236 different companies and currently sits at #15 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. Perpetua Resources Corp. is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for PPTA's full-year earnings has moved 7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, PPTA has gained about 76.8% so far this year. In comparison, Basic Materials companies have returned an average of 23%. This shows that Perpetua Resources Corp. is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Solaris Resources Inc. (SLSR), has outperformed the sector so far this year. The stock's year-to-date return is 78.6%.

The consensus estimate for Solaris Resources Inc.'s current year EPS has increased 14.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Perpetua Resources Corp. belongs to the Mining - Miscellaneous industry, a group that includes 63 individual companies and currently sits at #157 in the Zacks Industry Rank. On average, this group has gained an average of 23.8% so far this year, meaning that PPTA is performing better in terms of year-to-date returns. Solaris Resources Inc. is also part of the same industry.

Investors interested in the Basic Materials sector may want to keep a close eye on Perpetua Resources Corp. and Solaris Resources Inc. as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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