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Are Basic Materials Stocks Lagging Carpenter Technology (CRS) 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. Carpenter Technology (CRS - 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.

Carpenter Technology is one of 234 companies in the Basic Materials group. The Basic Materials group currently sits at #15 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 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. Carpenter Technology is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for CRS' full-year earnings has moved 9.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CRS has returned about 175.6% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -1.7%. As we can see, Carpenter Technology is performing better than its sector in the calendar year.

Another stock in the Basic Materials sector, Givaudan SA (GVDNY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 5.9%.

The consensus estimate for Givaudan SA's current year EPS has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Carpenter Technology belongs to the Steel - Speciality industry, a group that includes 5 individual stocks and currently sits at #166 in the Zacks Industry Rank. On average, this group has gained an average of 61.9% so far this year, meaning that CRS is performing better in terms of year-to-date returns.

On the other hand, Givaudan SA belongs to the Chemical - Specialty industry. This 33-stock industry is currently ranked #184. The industry has moved -12.6% year to date.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Carpenter Technology and Givaudan SA as they could maintain their solid performance.


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