The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Allegheny Technologies (ATI) 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.
Allegheny Technologies is one of 244 individual stocks in the Basic Materials sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Allegheny Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ATI’s full-year earnings has moved 25.6% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the latest available data, ATI has gained about 44% so far this year. Meanwhile, the Basic Materials sector has returned an average of -0.6% on a year-to-date basis. This means that Allegheny Technologies is performing better than its sector in terms of year-to-date returns.
Another stock in the Basic Materials sector, Anglo American (NGLOY), has outperformed the sector so far this year. The stock’s year-to-date return is 12.2%.
For Anglo American, the consensus EPS estimate for the current year has increased 21% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Allegheny Technologies belongs to the Steel – Speciality industry, a group that includes 4 individual companies and currently sits at #4 in the Zacks Industry Rank. This group has gained an average of 16.2% so far this year, so ATI is performing better in this area.
On the other hand, Anglo American belongs to the Mining – Miscellaneous industry. This 50-stock industry is currently ranked #180. The industry has moved +8.2% year to date.
Investors with an interest in Basic Materials stocks should continue to track Allegheny Technologies and Anglo American. These stocks will be looking to continue their solid performance.
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