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 Allegheny Technologies (ATI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Allegheny Technologies is one of 238 companies in the Basic Materials group. The Basic Materials group currently sits at #10 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 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. Allegheny Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ATI's full-year earnings has moved 39.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ATI has moved about 95.4% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have lost about 6.3% on average. This means that Allegheny Technologies is performing better than its sector in terms of year-to-date returns.
Another Basic Materials stock, which has outperformed the sector so far this year, is Cal-Maine Foods (CALM). The stock has returned 56.6% year-to-date.
For Cal-Maine Foods, the consensus EPS estimate for the current year has increased 346.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Allegheny Technologies belongs to the Steel - Speciality industry, which includes 4 individual stocks and currently sits at #2 in the Zacks Industry Rank. On average, stocks in this group have gained 50.4% this year, meaning that ATI is performing better in terms of year-to-date returns.
In contrast, Cal-Maine Foods falls under the Agriculture - Products industry. Currently, this industry has 7 stocks and is ranked #100. Since the beginning of the year, the industry has moved -3%.
Investors with an interest in Basic Materials stocks should continue to track Allegheny Technologies and Cal-Maine Foods. These stocks will be looking to continue their solid performance.
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