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Has Commercial Metals (CMC) Outpaced Other Basic Materials Stocks This Year?

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Investors focused on the Basic Materials space have likely heard of Commercial Metals (CMC - Free Report) , 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 CMC and the rest of the Basic Materials group's stocks.

Commercial Metals is one of 236 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 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 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. CMC is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CMC's full-year earnings has moved 30.17% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, CMC has moved about 2.65% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 2.50%. This means that Commercial Metals is performing better than its sector in terms of year-to-date returns.

Breaking things down more, CMC is a member of the Steel - Producers industry, which includes 26 individual companies and currently sits at #80 in the Zacks Industry Rank. Stocks in this group have lost about 20.96% so far this year, so CMC is performing better this group in terms of year-to-date returns.

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


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