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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. National Steel (SID) 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? One simple way to answer this question is to take a look at the year-to-date performance of SID and the rest of the Basic Materials group's stocks.
National Steel is one of 251 companies in the Basic Materials group. The Basic Materials group currently sits at #3 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 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. SID is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for SID's full-year earnings has moved 13.02% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, SID has moved about 36.47% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 16.17%. This means that National Steel is outperforming the sector as a whole this year.
To break things down more, SID belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #12 in the Zacks Industry Rank. On average, this group has gained an average of 65.11% so far this year, meaning that SID is slightly underperforming its industry in terms of year-to-date returns.
SID 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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National Steel Company (SID) : Free Stock Analysis Report
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