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Is Schnitzer Steel Industries (SCHN) Stock Outpacing Its Basic Materials Peers This Year?

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Investors focused on the Basic Materials space have likely heard of Schnitzer Steel Industries (SCHN), 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.

Schnitzer Steel Industries is one of 245 companies in the Basic Materials group. The Basic Materials group currently sits at #2 within 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 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. SCHN is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for SCHN's full-year earnings has moved 108.60% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that SCHN has returned about 38.11% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 18.23% on average. This shows that Schnitzer Steel Industries is outperforming its peers so far this year.

Looking more specifically, SCHN belongs to the Steel - Producers industry, which includes 24 individual stocks and currently sits at #3 in the Zacks Industry Rank. Stocks in this group have gained about 36.97% so far this year, so SCHN is performing better this group in terms of year-to-date returns.

Investors with an interest in Basic Materials stocks should continue to track SCHN. The stock will be looking to continue its solid performance.


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