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Is ATI Inc. (ATI) 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. Allegheny Technologies (ATI - 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? 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.

Allegheny Technologies is a member of our Basic Materials group, which includes 241 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Allegheny Technologies is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ATI's full-year earnings has moved 6.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ATI has returned 28.3% so far this year. At the same time, Basic Materials stocks have lost an average of 3%. As we can see, Allegheny Technologies is performing better than its sector in the calendar year.

Another stock in the Basic Materials sector, Reliance (RS - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 2.6%.

For Reliance, the consensus EPS estimate for the current year has increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Allegheny Technologies belongs to the Steel - Speciality industry, which includes 6 individual stocks and currently sits at #52 in the Zacks Industry Rank. This group has gained an average of 27.2% so far this year, so ATI is performing better in this area.

Reliance, however, belongs to the Mining - Miscellaneous industry. Currently, this 60-stock industry is ranked #189. The industry has moved -8.6% so far this year.

Investors interested in the Basic Materials sector may want to keep a close eye on Allegheny Technologies and Reliance as they attempt to continue their solid performance.

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