Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Is Carpenter Technology (CRS) 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.
Carpenter Technology is a member of the Basic Materials sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #8. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Carpenter Technology is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CRS' full-year earnings has moved 2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, CRS has returned 39.2% so far this year. Meanwhile, the Basic Materials sector has returned an average of 13.6% on a year-to-date basis. This shows that Carpenter Technology is outperforming its peers so far this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Lithium Americas Corp. (LAC). The stock has returned 14.5% year-to-date.
For Lithium Americas Corp., the consensus EPS estimate for the current year has increased 65.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Carpenter Technology belongs to the Steel - Speciality industry, a group that includes 6 individual companies and currently sits at #163 in the Zacks Industry Rank. Stocks in this group have gained about 33.8% so far this year, so CRS is performing better this group in terms of year-to-date returns.
On the other hand, Lithium Americas Corp. belongs to the Mining - Miscellaneous industry. This 72-stock industry is currently ranked #154. The industry has moved +24.1% year to date.
Carpenter Technology and Lithium Americas Corp. could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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Carpenter Technology Corporation (CRS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).