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Has Steel Dynamics (STLD) Outpaced Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Steel Dynamics (STLD - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Steel Dynamics is a member of our Basic Materials group, which includes 243 different companies and currently sits at #2 in 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. STLD is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for STLD's full-year earnings has moved 17.38% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, STLD has gained about 7.47% so far this year. Meanwhile, the Basic Materials sector has returned an average of -2.34% on a year-to-date basis. This shows that Steel Dynamics is outperforming its peers so far this year.

To break things down more, STLD belongs to the Steel - Producers industry, a group that includes 26 individual companies and currently sits at #15 in the Zacks Industry Rank. On average, stocks in this group have gained 5.73% this year, meaning that STLD is performing better in terms of year-to-date returns.

Investors in the Basic Materials sector will want to keep a close eye on STLD as it attempts to continue its solid performance.


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