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Is Commercial Metals (CMC) Stock Outpacing Its Basic Materials Peers 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. Commercial Metals (CMC - 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.
Commercial Metals is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #14. 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. Commercial Metals is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CMC's full-year earnings has moved 11.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CMC has returned about 12.4% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 9.9% on a year-to-date basis. This shows that Commercial Metals is outperforming its peers so far this year.
Olympic Steel (ZEUS - 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 75%.
The consensus estimate for Olympic Steel's current year EPS has increased 60.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Commercial Metals is a member of the Steel - Producers industry, which includes 22 individual companies and currently sits at #21 in the Zacks Industry Rank. This group has gained an average of 27.7% so far this year, so CMC is slightly underperforming its industry in this area. Olympic Steel is also part of the same industry.
Investors with an interest in Basic Materials stocks should continue to track Commercial Metals and Olympic Steel. These stocks will be looking to continue their solid performance.
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Is Commercial Metals (CMC) Stock Outpacing Its Basic Materials Peers This Year?
For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Commercial Metals (CMC - 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.
Commercial Metals is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #14. 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. Commercial Metals is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CMC's full-year earnings has moved 11.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CMC has returned about 12.4% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 9.9% on a year-to-date basis. This shows that Commercial Metals is outperforming its peers so far this year.
Olympic Steel (ZEUS - 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 75%.
The consensus estimate for Olympic Steel's current year EPS has increased 60.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Commercial Metals is a member of the Steel - Producers industry, which includes 22 individual companies and currently sits at #21 in the Zacks Industry Rank. This group has gained an average of 27.7% so far this year, so CMC is slightly underperforming its industry in this area. Olympic Steel is also part of the same industry.
Investors with an interest in Basic Materials stocks should continue to track Commercial Metals and Olympic Steel. These stocks will be looking to continue their solid performance.