Is Nucor (NUE) Stock Outpacing Its Basic Materials Peers This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Nucor (NUE) one of those stocks right now? 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.
Nucor is a member of our Basic Materials group, which includes 241 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Nucor is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for NUE's full-year earnings has moved 56% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, NUE has moved about 9.2% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of -3.6%. This shows that Nucor is outperforming its peers so far this year.
Another stock in the Basic Materials sector, Glencore PLC (GLNCY), has outperformed the sector so far this year. The stock's year-to-date return is 8.8%.
In Glencore PLC's case, the consensus EPS estimate for the current year increased 64% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Nucor belongs to the Steel - Producers industry, which includes 24 individual stocks and currently sits at #18 in the Zacks Industry Rank. This group has gained an average of 6.9% so far this year, so NUE is performing better in this area.
Glencore PLC, however, belongs to the Mining - Miscellaneous industry. Currently, this 49-stock industry is ranked #79. The industry has moved +2.6% so far this year.
Investors with an interest in Basic Materials stocks should continue to track Nucor and Glencore PLC. These stocks will be looking to continue their solid performance.
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