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Is Steel Dynamics (STLD) Stock Outpacing Its Basic Materials Peers This Year?

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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. Is Steel Dynamics (STLD) 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.

Steel Dynamics is one of 245 companies in the Basic Materials group. The Basic Materials group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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).

Within the past quarter, the Zacks Consensus Estimate for STLD's full-year earnings has moved 125.41% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, STLD has moved about 72.90% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 27.95% on a year-to-date basis. As we can see, Steel Dynamics is performing better than its sector in the calendar year.

Breaking things down more, STLD is a member of the Steel - Producers industry, which includes 24 individual companies and currently sits at #8 in the Zacks Industry Rank. Stocks in this group have gained about 53.67% so far this year, so STLD is performing better this group in terms of year-to-date returns.

Investors in the Basic Materials sector will want to keep a close eye on STLD as it attempts to continue its solid performance.

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