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Is L.B. Foster (FSTR) Outperforming Other Basic Materials Stocks This Year?

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Investors focused on the Basic Materials space have likely heard of L.B. Foster (FSTR - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? 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.

L.B. Foster is a member of our Basic Materials group, which includes 245 different companies and currently sits at #2 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 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. FSTR is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for FSTR's full-year earnings has moved 8.24% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, FSTR has returned 8.97% so far this year. At the same time, Basic Materials stocks have gained an average of 18.23%. This means that L.B. Foster is outperforming the sector as a whole this year.

Breaking things down more, FSTR is a member of the Steel - Producers industry, which includes 24 individual companies and currently sits at #3 in the Zacks Industry Rank. Stocks in this group have gained about 36.97% so far this year, so FSTR is slightly underperforming its industry this group in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to FSTR as it looks to continue its solid performance.


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