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 Commercial Metals (CMC) one of those stocks right now? 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.
Commercial Metals is one of 245 individual stocks in the Basic Materials sector. Collectively, these companies sit at #6 in 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. CMC is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CMC's full-year earnings has moved 29.40% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CMC has returned 59.01% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 24.27% on average. This means that Commercial Metals is performing better than its sector in terms of year-to-date returns.
Looking more specifically, CMC belongs to the Steel - Producers industry, a group that includes 24 individual stocks and currently sits at #20 in the Zacks Industry Rank. Stocks in this group have gained about 50.18% so far this year, so CMC is performing better this group in terms of year-to-date returns.
Investors in the Basic Materials sector will want to keep a close eye on CMC as it attempts to continue its solid performance.
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