Yahoo Finance Are Basic Materials Stocks Lagging South32 (SOUHY) This Year?
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 South32 Ltd. (SOUHY) 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.
South32 Ltd. is a member of the Basic Materials sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #5. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. South32 Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for SOUHY's full-year earnings has moved 27.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that SOUHY has returned about 15.4% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of 6.6%. This means that South32 Ltd. is outperforming the sector as a whole this year.
One other Basic Materials stock that has outperformed the sector so far this year is Steel Dynamics (STLD). The stock is up 25.2% year-to-date.
For Steel Dynamics, the consensus EPS estimate for the current year has increased 46.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, South32 Ltd. belongs to the Mining - Miscellaneous industry, a group that includes 49 individual companies and currently sits at #90 in the Zacks Industry Rank. On average, this group has gained an average of 6.2% so far this year, meaning that SOUHY is performing better in terms of year-to-date returns.
In contrast, Steel Dynamics falls under the Steel - Producers industry. Currently, this industry has 22 stocks and is ranked #23. Since the beginning of the year, the industry has moved +16.5%.
Investors with an interest in Basic Materials stocks should continue to track South32 Ltd. and Steel Dynamics. These stocks will be looking to continue their solid performance.
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South32 Ltd. (SOUHY) : Free Stock Analysis Report
Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
