The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Allegheny Technologies (ATI) one of those stocks right now? 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.
Allegheny Technologies is a member of our Basic Materials group, which includes 243 different companies and currently sits at #4 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 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. Allegheny Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ATI’s full-year earnings has moved 46.2% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the most recent data, ATI has returned 35.5% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 11.9% on average. This shows that Allegheny Technologies is outperforming its peers so far this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Cameco (CCJ). The stock has returned 2.1% year-to-date.
The consensus estimate for Cameco’s current year EPS has increased 37.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Allegheny Technologies belongs to the Steel – Speciality industry, a group that includes 4 individual companies and currently sits at #20 in the Zacks Industry Rank. This group has gained an average of 8.3% so far this year, so ATI is performing better in this area.
On the other hand, Cameco belongs to the Mining – Miscellaneous industry. This 47-stock industry is currently ranked #142. The industry has moved -7.8% year to date.
Investors interested in the Basic Materials sector may want to keep a close eye on Allegheny Technologies and Cameco as they attempt to continue their solid performance.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the
Zacks Top 10 Stocks
portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
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
