Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Steel Dynamics (STLD - 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.
Steel Dynamics is one of 240 companies in the Basic Materials group. The Basic Materials group currently sits at #6 within the Zacks Sector Rank. 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 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. STLD is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for STLD's full-year earnings has moved 21.06% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, STLD has moved about 7.77% on a year-to-date basis. At the same time, Basic Materials stocks have lost an average of 3.14%. This shows that Steel Dynamics is outperforming its peers so far this year.
Breaking things down more, STLD is a member of the Steel - Producers industry, which includes 25 individual companies and currently sits at #73 in the Zacks Industry Rank. On average, this group has gained an average of 2.24% so far this year, meaning that STLD is performing better in terms of year-to-date returns.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to STLD as it looks to continue its solid performance.