For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Ternium (TX) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Ternium is a member of the Basic Materials sector. This group includes 245 individual stocks and currently holds a Zacks Sector Rank of #2. 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. TX is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for TX's full-year earnings has moved 41.82% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, TX has returned 31.84% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 18.02% on average. This shows that Ternium is outperforming its peers so far this year.
To break things down more, TX belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #3 in the Zacks Industry Rank. On average, this group has gained an average of 34.60% so far this year, meaning that TX is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to TX as it looks to continue its solid performance.
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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.