For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Carpenter Technology (CRS) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
Carpenter Technology is a member of our Basic Materials group, which includes 242 different companies and currently sits at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Carpenter Technology is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CRS' full-year earnings has moved 4.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CRS has returned 47.8% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 22.9% on average. This shows that Carpenter Technology is outperforming its peers so far this year.
One other Basic Materials stock that has outperformed the sector so far this year is Lynas Corp. (LYSDY). The stock is up 243% year-to-date.
Over the past three months, Lynas Corp.'s consensus EPS estimate for the current year has increased 12.9%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Carpenter Technology belongs to the Steel - Speciality industry, a group that includes 4 individual companies and currently sits at #184 in the Zacks Industry Rank. On average, stocks in this group have gained 37.5% this year, meaning that CRS is performing better in terms of year-to-date returns.
On the other hand, Lynas Corp. belongs to the Mining - Miscellaneous industry. This 70-stock industry is currently ranked #77. The industry has moved +28.8% year to date.
Carpenter Technology and Lynas Corp. could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.
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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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