Back to top

Image: Bigstock

Is Schnitzer Steel Industries (SCHN) Outperforming Other Basic Materials Stocks This Year?

Read MoreHide Full Article

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Schnitzer Steel Industries is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Schnitzer Steel Industries is a member of the Basic Materials sector. This group includes 251 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. SCHN is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for SCHN's full-year earnings has moved 8.69% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, SCHN has moved about 52.43% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 12.50%. This shows that Schnitzer Steel Industries is outperforming its peers so far this year.

Looking more specifically, SCHN belongs to the Steel - Producers industry, which includes 24 individual stocks and currently sits at #11 in the Zacks Industry Rank. On average, this group has gained an average of 56.52% so far this year, meaning that SCHN is slightly underperforming its industry in terms of year-to-date returns.

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

Published in