The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Commercial Metals (CMC) been one of those stocks this year? 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.
Commercial Metals is one of 244 individual stocks in the Basic Materials sector. Collectively, these companies sit at #5 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 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. Commercial Metals is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CMC’s full-year earnings has moved 33.1% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the latest available data, CMC has gained about 6.2% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 4.9% on average. As we can see, Commercial Metals is performing better than its sector in the calendar year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Northern Dynasty Minerals (NAK). The stock has returned 7% year-to-date.
The consensus estimate for Northern Dynasty Minerals’ current year EPS has increased 20% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Commercial Metals belongs to the Steel – Producers industry, a group that includes 23 individual companies and currently sits at #38 in the Zacks Industry Rank. Stocks in this group have gained about 5.2% so far this year, so CMC is performing better this group in terms of year-to-date returns.
On the other hand, Northern Dynasty Minerals belongs to the Mining – Gold industry. This 38-stock industry is currently ranked #158. The industry has moved +10.1% year to date.
Investors interested in the Basic Materials sector may want to keep a close eye on Commercial Metals and Northern Dynasty Minerals as they attempt to continue their solid performance.
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