For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Haynes International (HAYN) 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.
Haynes International is one of 244 individual stocks in the Basic Materials sector. Collectively, these companies sit at #16 in 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 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. Haynes International is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for HAYN's full-year earnings has moved 19.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, HAYN has moved about 5.1% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have lost about 16.2% on average. As we can see, Haynes International is performing better than its sector in the calendar year.
Another stock in the Basic Materials sector, SQM (SQM), has outperformed the sector so far this year. The stock's year-to-date return is 73.7%.
For SQM, the consensus EPS estimate for the current year has increased 20.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Haynes International belongs to the Steel - Speciality industry, a group that includes 4 individual stocks and currently sits at #178 in the Zacks Industry Rank.
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