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Is Steel Dynamics (STLD) Outperforming Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Steel Dynamics (STLD) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Steel Dynamics is a member of our Basic Materials group, which includes 250 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. STLD is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for STLD's full-year earnings has moved 73.33% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, STLD has gained about 57.63% so far this year. At the same time, Basic Materials stocks have gained an average of 2.73%. As we can see, Steel Dynamics is performing better than its sector in the calendar year.

Looking more specifically, STLD belongs to the Steel - Producers industry, a group that includes 24 individual stocks and currently sits at #16 in the Zacks Industry Rank. Stocks in this group have gained about 34.60% so far this year, so STLD is performing better this group in terms of year-to-date returns.

STLD 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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