Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Aperam (APEMY) 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.
Aperam is a member of our Basic Materials group, which includes 279 different companies and currently sits at #15 in the Zacks Sector Rank. 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. Aperam is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for APEMY's full-year earnings has moved 43.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, APEMY has gained about 26.5% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 14.7% on average. As we can see, Aperam is performing better than its sector in the calendar year.
Another stock in the Basic Materials sector, Quaker Chemical (KWR), has outperformed the sector so far this year. The stock's year-to-date return is 15.7%.
The consensus estimate for Quaker Chemical's current year EPS has increased 9.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Aperam is a member of the Steel - Producers industry, which includes 17 individual companies and currently sits at #69 in the Zacks Industry Rank. On average, this group has gained an average of 40.4% so far this year, meaning that APEMY is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Quaker Chemical falls under the Chemical - Specialty industry. Currently, this industry has 46 stocks and is ranked #88. Since the beginning of the year, the industry has moved +6.5%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Aperam and Quaker Chemical as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).