Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. L.B. Foster (FSTR) 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.
L.B. Foster is one of 294 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 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. L.B. Foster is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FSTR's full-year earnings has moved 4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, FSTR has returned 37.1% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 11.6% on average. 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 Glencore PLC (GLNCY). The stock has returned 37.9% year-to-date.
The consensus estimate for Glencore PLC's current year EPS has increased 19.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, L.B. Foster belongs to the Steel - Producers industry, a group that includes 17 individual stocks and currently sits at #61 in the Zacks Industry Rank. On average, stocks in this group have gained 38.3% this year, meaning that FSTR is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Glencore PLC falls under the Mining - Miscellaneous industry. Currently, this industry has 99 stocks and is ranked #198. Since the beginning of the year, the industry has moved +18.7%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to L.B. Foster and Glencore PLC as they could maintain their solid performance.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
L.B. Foster Company (FSTR): Free Stock Analysis Report
Glencore PLC (GLNCY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).