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Is Commercial Metals (CMC) Outperforming Other Basic Materials Stocks This Year?

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Investors focused on the Basic Materials space have likely heard of Commercial Metals (CMC), 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.

Commercial Metals is a member of our Basic Materials group, which includes 251 different companies and currently sits at #4 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 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. CMC is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CMC's full-year earnings has moved 27% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, CMC has returned 49.56% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 19.68% on average. As we can see, Commercial Metals is performing better than its sector in the calendar year.

Looking more specifically, CMC belongs to the Steel - Producers industry, a group that includes 24 individual stocks and currently sits at #9 in the Zacks Industry Rank. Stocks in this group have gained about 44.37% so far this year, so CMC is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to CMC as it looks to continue its solid performance.


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