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Is ArcelorMittal (MT) 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 ArcelorMittal (MT - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

ArcelorMittal is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #13 within the Zacks Sector Rank. 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 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. ArcelorMittal is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for MT's full-year earnings has moved 42% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that MT has returned about 2.3% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 1.4% on a year-to-date basis. As we can see, ArcelorMittal is performing better than its sector in the calendar year.

One other Basic Materials stock that has outperformed the sector so far this year is Ryerson Holding (RYI - Free Report) . The stock is up 18.3% year-to-date.

Over the past three months, Ryerson Holding's consensus EPS estimate for the current year has increased 28.5%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, ArcelorMittal belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #42 in the Zacks Industry Rank. On average, stocks in this group have gained 11.4% this year, meaning that MT is slightly underperforming its industry in terms of year-to-date returns. Ryerson Holding is also part of the same industry.

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


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