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Is Steel Dynamics (STLD) 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 Steel Dynamics (STLD - 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.

Steel Dynamics is one of 252 companies in the Basic Materials group. The Basic Materials group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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 #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for STLD's full-year earnings has moved 4.58% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, STLD has returned 56.06% so far this year. In comparison, Basic Materials companies have returned an average of 3.76%. This shows that Steel Dynamics is outperforming its peers so far this year.

Breaking things down more, STLD is a member of the Steel - Producers industry, which includes 24 individual companies and currently sits at #40 in the Zacks Industry Rank. On average, stocks in this group have gained 30.81% this year, meaning that STLD is performing better 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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