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Has ArcelorMittal (MT) Outpaced Other Basic Materials Stocks 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. ArcelorMittal (MT - 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.

ArcelorMittal is a member of our Basic Materials group, which includes 252 different companies and currently sits at #9 in 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. MT is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for MT's full-year earnings has moved 51.13% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, MT has returned 28.91% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 4.19% on average. As we can see, ArcelorMittal is performing better than its sector in the calendar year.

Looking more specifically, MT belongs to the Steel - Producers industry, which includes 24 individual stocks and currently sits at #50 in the Zacks Industry Rank. On average, stocks in this group have gained 35.13% this year, meaning that MT 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 MT as it attempts to continue its solid performance.


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