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

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Investors focused on the Basic Materials space have likely heard of Steel Dynamics (STLD), 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.

Steel Dynamics is one of 245 individual stocks in the Basic Materials sector. Collectively, these companies sit at #7 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 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 79.98% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, STLD has returned 56.85% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 15.21% on average. As we can see, Steel Dynamics is performing better than its sector in the calendar year.

To break things down more, STLD belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #20 in the Zacks Industry Rank. Stocks in this group have gained about 36.32% so far this year, so STLD is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to STLD as it looks to continue its solid performance.


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