Is ArcelorMittal (MT) Stock Outpacing Its Basic Materials Peers This Year?
Investors focused on the Basic Materials space have likely heard of ArcelorMittal (MT), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
ArcelorMittal is one of 245 companies in the Basic Materials group. The Basic Materials group currently sits at #7 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. MT is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for MT's full-year earnings has moved 78.51% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, MT has returned 34.06% so far this year. In comparison, Basic Materials companies have returned an average of 22.63%. As we can see, ArcelorMittal is performing better than its sector in the calendar year.
To break things down more, MT belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, this group has gained an average of 45.08% so far this year, meaning that MT is slightly underperforming its industry in terms of year-to-date returns.
MT will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.
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