Back to top

Image: Bigstock

Is Gerdau (GGB) Stock Outpacing Its Basic Materials Peers This Year?

Read MoreHide Full Article

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Gerdau (GGB - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Gerdau is a member of the Basic Materials sector. This group includes 247 individual stocks and currently holds a Zacks Sector Rank of #10. 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 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. Gerdau is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for GGB's full-year earnings has moved 18.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, GGB has moved about 5.4% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 0% on a year-to-date basis. As we can see, Gerdau is performing better than its sector in the calendar year.

MP Materials Corp. (MP - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 41.2%.

For MP Materials Corp. the consensus EPS estimate for the current year has increased 23.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Gerdau belongs to the Steel - Producers industry, a group that includes 23 individual companies and currently sits at #44 in the Zacks Industry Rank.

MP Materials Corp. however, belongs to the Mining - Miscellaneous industry. Currently, this 51-stock industry is ranked #183. The industry has moved 0% so far this year.

Gerdau and MP Materials Corp. could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gerdau S.A. (GGB) - free report >>

MP Materials Corp. (MP) - free report >>

Published in