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

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Steel Dynamics (STLD) 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 STLD and the rest of the Basic Materials group's stocks.

Steel Dynamics is one of 252 individual stocks in the Basic Materials sector. Collectively, these companies sit at #15 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 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. STLD is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for STLD's full-year earnings has moved 28.63% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, STLD has moved about 72.23% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 9.11%. This shows that Steel Dynamics is outperforming its peers so far this year.

To break things down more, STLD belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have gained about 38.09% 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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