Is Steel Dynamics (STLD) Outperforming Other Basic Materials Stocks This Year?

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Steel Dynamics (STLD) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Steel Dynamics is one of 251 individual stocks in the Basic Materials sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Steel Dynamics is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for STLD's full-year earnings has moved 15.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that STLD has returned about 61% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 3.8%. As we can see, Steel Dynamics 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 Veritiv (VRTV). The stock is up 512.1% year-to-date.

In Veritiv's case, the consensus EPS estimate for the current year increased 22.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Steel Dynamics belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #32 in the Zacks Industry Rank. On average, stocks in this group have gained 30.8% this year, meaning that STLD is performing better in terms of year-to-date returns.

Veritiv, however, belongs to the Paper and Related Products industry. Currently, this 11-stock industry is ranked #208. The industry has moved +4.5% so far this year.

Investors with an interest in Basic Materials stocks should continue to track Steel Dynamics and Veritiv. These stocks will be looking to continue their solid performance.

Investor Alert: Legal Marijuana Looking for big gains?

Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0%.

You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.