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

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Investors focused on the Basic Materials space have likely heard of Steel Dynamics (STLD - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? 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 251 different companies and currently sits at #3 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 #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for STLD's full-year earnings has moved 50.11% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, STLD has returned 98.32% so far this year. At the same time, Basic Materials stocks have gained an average of 16.17%. This means that Steel Dynamics is outperforming the sector as a whole this year.

To break things down more, STLD belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #12 in the Zacks Industry Rank. Stocks in this group have gained about 65.11% so far this year, so STLD is performing better this group in terms of year-to-date returns.

STLD 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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