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

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies 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 245 companies in the Basic Materials group. The Basic Materials group currently sits at #4 within 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 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. TX is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for TX's full-year earnings has moved 71.64% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that TX has returned about 27.89% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 18.85%. As we can see, Ternium is performing better than its sector in the calendar year.

To break things down more, TX belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #10 in the Zacks Industry Rank. On average, stocks in this group have gained 43.19% this year, meaning that TX is slightly underperforming its industry in terms of year-to-date returns.

TX will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.


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