For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Teck Resources Ltd (TECK) 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? 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.
Teck Resources Ltd is one of 242 individual stocks in the Basic Materials sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. 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 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. Teck Resources Ltd is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for TECK's full-year earnings has moved 54.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, TECK has moved about 40.4% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 12.9%. This means that Teck Resources Ltd is performing better than its sector in terms of year-to-date returns.
Another stock in the Basic Materials sector, Carpenter Technology (CRS), has outperformed the sector so far this year. The stock's year-to-date return is 35.3%.
Over the past three months, Carpenter Technology's consensus EPS estimate for the current year has increased 4.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Teck Resources Ltd belongs to the Mining – Miscellaneous industry, a group that includes 50 individual stocks and currently sits at #71 in the Zacks Industry Rank. On average, stocks in this group have gained 25.1% this year, meaning that TECK is performing better in terms of year-to-date returns.
In contrast, Carpenter Technology falls under the Steel – Speciality industry. Currently, this industry has 4 stocks and is ranked #3. Since the beginning of the year, the industry has moved +39.8%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Teck Resources Ltd and Carpenter Technology as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teck Resources Ltd (TECK) : Free Stock Analysis Report Carpenter Technology Corporation (CRS) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research