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 Uranium Energy (UEC) 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.
Uranium Energy is one of 242 individual stocks in the Basic Materials sector. Collectively, these companies sit at #13 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Uranium Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for UEC's full-year earnings has moved 28.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, UEC has gained about 0.6% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 16.1% on average. As we can see, Uranium Energy is performing better than its sector in the calendar year.
Another stock in the Basic Materials sector, Olympic Steel (ZEUS), has outperformed the sector so far this year. The stock's year-to-date return is 12.3%.
The consensus estimate for Olympic Steel's current year EPS has increased 110.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Uranium Energy belongs to the Mining - Miscellaneous industry, a group that includes 47 individual stocks and currently sits at #187 in the Zacks Industry Rank. On average, stocks in this group have lost 14.3% this year, meaning that UEC is performing better in terms of year-to-date returns.
On the other hand, Olympic Steel belongs to the Steel - Producers industry. This 24-stock industry is currently ranked #202. The industry has moved -9.9% year to date.
Investors with an interest in Basic Materials stocks should continue to track Uranium Energy and Olympic Steel. These stocks will be looking to continue their solid performance.
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