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Is Ternium (TX) Stock Outpacing Its Basic Materials Peers This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Ternium (TX - Free Report) one of those stocks right now? 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.

Ternium is one of 240 companies in the Basic Materials group. The Basic Materials group currently sits at #3 within 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 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. TX is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for TX's full-year earnings has moved 29.64% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, TX has moved about 23.76% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 10.61%. This shows that Ternium is outperforming its peers so far this year.

Breaking things down more, TX is a member of the Steel - Producers industry, which includes 24 individual companies and currently sits at #6 in the Zacks Industry Rank. On average, stocks in this group have gained 19.61% this year, meaning that TX is performing better in terms of year-to-date returns.

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


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