For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Aperam (APEMY) 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? 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.
Aperam is one of 275 companies in the Basic Materials group. The Basic Materials group currently sits at #14 within 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 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. Aperam is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for APEMY's full-year earnings has moved 12.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, APEMY has moved about 27.7% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 8.3%. As we can see, Aperam is performing better than its sector in the calendar year.
One other Basic Materials stock that has outperformed the sector so far this year is CSW Industrials (CSW). The stock is up 17.1% year-to-date.
Over the past three months, CSW Industrials' consensus EPS estimate for the current year has increased 6.5%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Aperam is a member of the Steel - Producers industry, which includes 17 individual companies and currently sits at #96 in the Zacks Industry Rank. This group has gained an average of 43.7% so far this year, so APEMY is slightly underperforming its industry in this area.
CSW Industrials, however, belongs to the Chemical - Specialty industry. Currently, this 46-stock industry is ranked #83. The industry has moved +10.1% so far this year.
Investors interested in the Basic Materials sector may want to keep a close eye on Aperam and CSW Industrials as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
