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Is Commercial Metals (CMC) Stock Outpacing Its Basic Materials Peers This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Commercial Metals (CMC - Free Report) one of those stocks right now? 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.

Commercial Metals is one of 245 individual stocks in the Basic Materials sector. Collectively, these companies sit at #7 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. CMC is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CMC's full-year earnings has moved 42.64% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, CMC has moved about 49.76% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 23.48%. This means that Commercial Metals is performing better than its sector in terms of year-to-date returns.

Looking more specifically, CMC belongs to the Steel - Producers industry, which includes 24 individual stocks and currently sits at #28 in the Zacks Industry Rank. On average, stocks in this group have gained 46.33% this year, meaning that CMC is performing better in terms of year-to-date returns.

CMC will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.


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