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 Commercial Metals (CMC) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Commercial Metals is a member of our Basic Materials group, which includes 236 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Commercial Metals is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CMC's full-year earnings has moved 3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CMC has returned about 7.3% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 2.3%. This shows that Commercial Metals is outperforming its peers so far this year.
One other Basic Materials stock that has outperformed the sector so far this year is Gold Fields (GFI). The stock is up 37.8% year-to-date.
For Gold Fields, the consensus EPS estimate for the current year has increased 23.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Commercial Metals is a member of the Steel - Producers industry, which includes 24 individual companies and currently sits at #52 in the Zacks Industry Rank. On average, this group has gained an average of 18.7% so far this year, meaning that CMC is slightly underperforming its industry in terms of year-to-date returns.
Gold Fields, however, belongs to the Mining - Gold industry. Currently, this 37-stock industry is ranked #86. The industry has moved +6.4% so far this year.
Investors with an interest in Basic Materials stocks should continue to track Commercial Metals and Gold Fields. These stocks will be looking to continue their solid performance.
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Gold Fields Limited (GFI) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
