Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Gerdau (GGB) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Gerdau is a member of the Basic Materials sector. This group includes 294 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Gerdau is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for GGB's full-year earnings has moved 3.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, GGB has gained about 42% so far this year. At the same time, Basic Materials stocks have gained an average of 9%. As we can see, Gerdau is performing better than its sector in the calendar year.
One other Basic Materials stock that has outperformed the sector so far this year is Givaudan SA (GVDNY). The stock is up 21.2% year-to-date.
Over the past three months, Givaudan SA's consensus EPS estimate for the current year has increased 0.5%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Gerdau is a member of the Steel - Producers industry, which includes 17 individual companies and currently sits at #76 in the Zacks Industry Rank. This group has gained an average of 41.4% so far this year, so GGB is performing better in this area.
On the other hand, Givaudan SA belongs to the Chemical - Specialty industry. This 47-stock industry is currently ranked #166. The industry has moved +10.5% year to date.
Investors with an interest in Basic Materials stocks should continue to track Gerdau and Givaudan SA. These stocks will be looking to continue their solid performance.
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Gerdau S.A. (GGB): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).