Is L.B. Foster (FSTR) Outperforming Other Basic Materials Stocks 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 L.B. Foster (FSTR) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

L.B. Foster is one of 249 individual stocks in the Basic Materials sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. L.B. Foster is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for FSTR's full-year earnings has moved 0.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, FSTR has returned 53.4% so far this year. Meanwhile, the Basic Materials sector has returned an average of 16.8% on a year-to-date basis. This shows that L.B. Foster is outperforming its peers so far this year.

Another Basic Materials stock, which has outperformed the sector so far this year, is Loop Industries, Inc. (LOOP). The stock has returned 42% year-to-date.

For Loop Industries, Inc., the consensus EPS estimate for the current year has increased 45.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, L.B. Foster belongs to the Steel - Producers industry, a group that includes 17 individual companies and currently sits at #80 in the Zacks Industry Rank. On average, this group has gained an average of 42.7% so far this year, meaning that FSTR is performing better in terms of year-to-date returns.

In contrast, Loop Industries, Inc. falls under the Chemical - Specialty industry. Currently, this industry has 44 stocks and is ranked #103. Since the beginning of the year, the industry has moved +8.1%.

Investors with an interest in Basic Materials stocks should continue to track L.B. Foster and Loop Industries, Inc.. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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