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Is TimkenSteel (TMST) Stock Outpacing Its Basic Materials Peers 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. TimkenSteel 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? Let's take a closer look at the stock's year-to-date performance to find out.

TimkenSteel is a member of the Basic Materials sector. This group includes 251 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. TimkenSteel is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for TMST's full-year earnings has moved 22.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that TMST has returned about 197.4% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 5.4%. This means that TimkenSteel is performing better than its sector in terms of year-to-date returns.

Tronox (TROX - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 47.4%.

Over the past three months, Tronox's consensus EPS estimate for the current year has increased 1.6%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, TimkenSteel belongs to the Steel - Producers industry, a group that includes 24 individual stocks and currently sits at #37 in the Zacks Industry Rank. This group has gained an average of 34.4% so far this year, so TMST is performing better in this area.

In contrast, Tronox falls under the Chemical - Diversified industry. Currently, this industry has 41 stocks and is ranked #93. Since the beginning of the year, the industry has moved +11.6%.

Investors with an interest in Basic Materials stocks should continue to track TimkenSteel and Tronox. These stocks will be looking to continue their solid performance.


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