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Is Schnitzer Steel (SCHN) Outperforming Other Basic Materials Stocks This Year?

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  • SCHN
  • SOUHY

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Schnitzer Steel (SCHN) been one of those stocks this year? 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.

Schnitzer Steel is a member of our Basic Materials group, which includes 251 different companies and currently sits at #9 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 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. Schnitzer Steel is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for SCHN's full-year earnings has moved 19% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, SCHN has gained about 50.7% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 4.6% on average. This means that Schnitzer Steel is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is South32 Ltd. (SOUHY). The stock is up 31.7% year-to-date.

In South32 Ltd.'s case, the consensus EPS estimate for the current year increased 59.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Schnitzer Steel belongs to the Steel - Producers industry, which includes 24 individual stocks and currently sits at #48 in the Zacks Industry Rank. On average, stocks in this group have gained 25.8% this year, meaning that SCHN is performing better in terms of year-to-date returns.

On the other hand, South32 Ltd. belongs to the Mining - Miscellaneous industry. This 51-stock industry is currently ranked #180. The industry has moved -2.4% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Schnitzer Steel and South32 Ltd. as they attempt to continue their solid performance.


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Schnitzer Steel Industries, Inc. (SCHN) : Free Stock Analysis Report
 
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