Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. 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? Let's take a closer look at the stock's year-to-date performance to find out.
Alpha Metallurgical is a member of our Basic Materials group, which includes 236 different companies and currently sits at #15 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Alpha Metallurgical is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AMR's full-year earnings has moved 48.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, AMR has moved about 6.6% on a year-to-date basis. At the same time, Basic Materials stocks have lost an average of 7.1%. This shows that Alpha Metallurgical is outperforming its peers so far this year.
Steel Dynamics (STLD) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.5%.
In Steel Dynamics' case, the consensus EPS estimate for the current year increased 10.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Alpha Metallurgical is a member of the Mining - Miscellaneous industry, which includes 56 individual companies and currently sits at #162 in the Zacks Industry Rank. This group has lost an average of 9.2% so far this year, so AMR is performing better in this area.
Steel Dynamics, however, belongs to the Steel - Producers industry. Currently, this 22-stock industry is ranked #183. The industry has moved -1.7% so far this year.
Investors with an interest in Basic Materials stocks should continue to track Alpha Metallurgical and Steel Dynamics. These stocks will be looking to continue their solid performance.
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