Is Nucor (NUE) Outperforming Other Basic Materials Stocks This Year?

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Nucor (NUE) 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? 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 294 individual stocks in the Basic Materials sector. Collectively, these companies sit at #13 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 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. Nucor is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for NUE's full-year earnings has moved 11% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, NUE has returned 57.1% so far this year. Meanwhile, the Basic Materials sector has returned an average of 9.8% on a year-to-date basis. This means that Nucor is performing better than its sector in terms of year-to-date returns.

Another Basic Materials stock, which has outperformed the sector so far this year, is Teck Resources Ltd (TECK). The stock has returned 34.9% year-to-date.

The consensus estimate for Teck Resources Ltd's current year EPS has increased 26.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Nucor belongs to the Steel - Producers industry, a group that includes 17 individual stocks and currently sits at #76 in the Zacks Industry Rank. On average, stocks in this group have gained 37.5% this year, meaning that NUE is performing better in terms of year-to-date returns.

Teck Resources Ltd, however, belongs to the Mining - Miscellaneous industry. Currently, this 99-stock industry is ranked #170. The industry has moved +11.5% so far this year.

Investors with an interest in Basic Materials stocks should continue to track Nucor and Teck Resources Ltd. 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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