Is Commercial Metals (CMC) Stock Outpacing Its Basic Materials Peers This Year?
For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Commercial Metals (CMC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.
Commercial Metals is one of 239 individual stocks in the Basic Materials sector. Collectively, these companies sit at #16 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 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. Commercial Metals 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 14.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, CMC has moved about 8.1% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 4.8%. This means that Commercial Metals is performing better than its sector in terms of year-to-date returns.
Universal Stainless & Alloy Products (USAP) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 78.9%.
For Universal Stainless & Alloy Products, the consensus EPS estimate for the current year has increased 181.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Commercial Metals belongs to the Steel - Producers industry, a group that includes 23 individual companies and currently sits at #85 in the Zacks Industry Rank. On average, this group has gained an average of 28.5% so far this year, meaning that CMC is slightly underperforming its industry in terms of year-to-date returns. Universal Stainless & Alloy Products is also part of the same industry.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Commercial Metals and Universal Stainless & Alloy Products as they could maintain their solid performance.
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Commercial Metals Company (CMC) : Free Stock Analysis Report
Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report
