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Is Commercial Metals (CMC) 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. Is Commercial Metals (CMC - Free Report) one of those stocks right now? 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.

Commercial Metals is one of 252 companies in the Basic Materials group. The Basic Materials group currently sits at #8 within 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Commercial Metals is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CMC's full-year earnings has moved 26.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that CMC has returned about 71.3% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 9% on average. This means that Commercial Metals is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Denison Mine (DNN - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 168.9%.

For Denison Mine, the consensus EPS estimate for the current year has increased 200% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Commercial Metals belongs to the Steel - Producers industry, which includes 24 individual stocks and currently sits at #27 in the Zacks Industry Rank. On average, stocks in this group have gained 38.9% this year, meaning that CMC is performing better in terms of year-to-date returns.

On the other hand, Denison Mine belongs to the Mining - Miscellaneous industry. This 51-stock industry is currently ranked #184. The industry has moved -1.4% year to date.

Investors with an interest in Basic Materials stocks should continue to track Commercial Metals and Denison Mine. These stocks will be looking to continue their solid performance.


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