Has Schnitzer Steel Industries (SCHN) Outpaced Other Basic Materials Stocks This Year?

Zacks Equity Research
·2 min read

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Schnitzer Steel Industries (SCHN) 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.

Schnitzer Steel Industries is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #5. 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 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. SCHN is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for SCHN's full-year earnings has moved 114.04% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, SCHN has gained about 8.24% so far this year. At the same time, Basic Materials stocks have gained an average of 6.99%. As we can see, Schnitzer Steel Industries is performing better than its sector in the calendar year.

Breaking things down more, SCHN is a member of the Steel - Producers industry, which includes 24 individual companies and currently sits at #62 in the Zacks Industry Rank. Stocks in this group have gained about 8.41% so far this year, so SCHN is slightly underperforming its industry this group in terms of year-to-date returns.

Investors with an interest in Basic Materials stocks should continue to track SCHN. The stock will be looking to continue its solid performance.


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