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

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Schnitzer Steel Industries (SCHN - Free Report) 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.


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