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Is Ternium (TX) Stock Outpacing Its Basic Materials Peers This Year?

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Investors focused on the Basic Materials space have likely heard of Ternium (TX - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.

Ternium is one of 245 companies in the Basic Materials group. The Basic Materials group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. TX is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for TX's full-year earnings has moved 76.24% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that TX has returned about 29.75% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 28.49% on a year-to-date basis. This means that Ternium is performing better than its sector in terms of year-to-date returns.

To break things down more, TX belongs to the Steel - Producers industry, a group that includes 24 individual companies and currently sits at #18 in the Zacks Industry Rank. On average, this group has gained an average of 57.17% so far this year, meaning that TX is slightly underperforming its industry in terms of year-to-date returns.

Investors in the Basic Materials sector will want to keep a close eye on TX as it attempts to continue its solid performance.


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