Investors focused on the Basic Materials space have likely heard of Nucor (NUE), but is the stock performing well in comparison to the rest of its sector peers? 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.
Nucor is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. 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 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. NUE is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for NUE's full-year earnings has moved 19.09% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, NUE has moved about 0.61% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of -0.86% on a year-to-date basis. This means that Nucor is outperforming the sector as a whole this year.
Looking more specifically, NUE belongs to the Steel – Producers industry, which includes 25 individual stocks and currently sits at #34 in the Zacks Industry Rank. On average, this group has gained an average of 4.32% so far this year, meaning that NUE is slightly underperforming its industry in terms of year-to-date returns.
Investors with an interest in Basic Materials stocks should continue to track NUE. The stock will be looking to continue its solid performance.
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