The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Alpha Metallurgical (AMR) 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.
Alpha Metallurgical is a member of our Basic Materials group, which includes 238 different companies and currently sits at #8 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 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. Alpha Metallurgical is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AMR's full-year earnings has moved 22.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that AMR has returned about 12.5% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 4.9% on a year-to-date basis. This means that Alpha Metallurgical is outperforming the sector as a whole this year.
One other Basic Materials stock that has outperformed the sector so far this year is Commercial Metals (CMC). The stock is up 11.6% year-to-date.
The consensus estimate for Commercial Metals' current year EPS has increased 21.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Alpha Metallurgical belongs to the Mining - Miscellaneous industry, a group that includes 49 individual stocks and currently sits at #84 in the Zacks Industry Rank. This group has gained an average of 11.9% so far this year, so AMR is performing better in this area.
On the other hand, Commercial Metals belongs to the Steel - Producers industry. This 22-stock industry is currently ranked #19. The industry has moved +19.9% year to date.
Investors interested in the Basic Materials sector may want to keep a close eye on Alpha Metallurgical and Commercial Metals as they attempt to continue their solid performance.
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