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Is Carpenter Technology (CRS) 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. Is Carpenter Technology (CRS - Free Report) one of those stocks right now? 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.

Carpenter Technology is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Carpenter Technology is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CRS' full-year earnings has moved 18.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that CRS has returned about 106.3% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -5%. This means that Carpenter Technology is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Iamgold (IAG - Free Report) . The stock is up 100.8% year-to-date.

In Iamgold's case, the consensus EPS estimate for the current year increased 57.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Carpenter Technology is a member of the Steel - Speciality industry, which includes 6 individual companies and currently sits at #196 in the Zacks Industry Rank. Stocks in this group have gained about 48.5% so far this year, so CRS is performing better this group in terms of year-to-date returns.

In contrast, Iamgold falls under the Mining - Gold industry. Currently, this industry has 37 stocks and is ranked #98. Since the beginning of the year, the industry has moved +26.7%.

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


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