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Is Nucor (NUE) Stock Outpacing Its Basic Materials Peers This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Nucor (NUE - Free Report) 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? 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.

Nucor is a member of the Basic Materials sector. This group includes 252 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Nucor is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for NUE's full-year earnings has moved 18% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, NUE has moved about 110.7% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 6.8%. This means that Nucor is outperforming the sector as a whole this year.

One other Basic Materials stock that has outperformed the sector so far this year is Olin (OLN - Free Report) . The stock is up 136.9% year-to-date.

The consensus estimate for Olin's current year EPS has increased 18.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Nucor is a member of the Steel - Producers industry, which includes 24 individual companies and currently sits at #42 in the Zacks Industry Rank. This group has gained an average of 29.4% so far this year, so NUE is performing better in this area.

Olin, however, belongs to the Chemical - Diversified industry. Currently, this 41-stock industry is ranked #107. The industry has moved +15.8% so far this year.

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


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