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 Carpenter Technology (CRS) one of those stocks right now? 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.
Carpenter Technology is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #15 within 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. Carpenter Technology is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for CRS' full-year earnings has moved 4.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CRS has returned about 40.8% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 22.8% on a year-to-date basis. This shows that Carpenter Technology is outperforming its peers so far this year.
Another stock in the Basic Materials sector, Lynas Corp. (LYSDY), has outperformed the sector so far this year. The stock's year-to-date return is 177.3%.
In Lynas Corp.'s case, the consensus EPS estimate for the current year increased 33.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Carpenter Technology belongs to the Steel - Speciality industry, a group that includes 5 individual stocks and currently sits at #47 in the Zacks Industry Rank. Stocks in this group have gained about 33% so far this year, so CRS is performing better this group in terms of year-to-date returns.
On the other hand, Lynas Corp. belongs to the Mining - Miscellaneous industry. This 63-stock industry is currently ranked #156. The industry has moved +24.1% year to date.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Carpenter Technology and Lynas Corp. as they could maintain their solid performance.
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Carpenter Technology Corporation (CRS): Free Stock Analysis Report Lynas Corp. (LYSDY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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