Investors focused on the Basic Materials space have likely heard of Steel Dynamics (STLD), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of STLD and the rest of the Basic Materials group’s stocks.
Steel Dynamics is one of 252 companies in the Basic Materials group. The Basic Materials group currently sits at #14 within the Zacks Sector Rank. 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 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. STLD is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for STLD’s full-year earnings has moved 19.93% higher within the past quarter. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the most recent data, STLD has returned 78.28% so far this year. Meanwhile, the Basic Materials sector has returned an average of 10.48% on a year-to-date basis. This means that Steel Dynamics is performing better than its sector in terms of year-to-date returns.
Looking more specifically, STLD belongs to the Steel – Producers industry, a group that includes 24 individual stocks and currently sits at #25 in the Zacks Industry Rank. On average, stocks in this group have gained 38.98% this year, meaning that STLD is performing better in terms of year-to-date returns.
STLD 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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