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Are Basic Materials Stocks Lagging ATI Inc. (ATI) 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. 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 the Basic Materials sector. This group includes 232 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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).

Within the past quarter, the Zacks Consensus Estimate for ATI's full-year earnings has moved 4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ATI has gained about 52.8% so far this year. At the same time, Basic Materials stocks have gained an average of 9%. This shows that Allegheny Technologies is outperforming its peers so far this year.

Eldorado Gold Corporation (EGO - 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 37.1%.

Over the past three months, Eldorado Gold Corporation's consensus EPS estimate for the current year has increased 22.4%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Allegheny Technologies belongs to the Steel - Speciality industry, a group that includes 5 individual stocks and currently sits at #96 in the Zacks Industry Rank. On average, stocks in this group have gained 46.2% this year, meaning that ATI is performing better in terms of year-to-date returns.

On the other hand, Eldorado Gold Corporation belongs to the Mining - Gold industry. This 39-stock industry is currently ranked #40. The industry has moved +52.9% year to date.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Allegheny Technologies and Eldorado Gold Corporation as they could maintain their solid performance.


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