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Has TimkenSteel (TMST) Outpaced Other Basic Materials Stocks This Year?

Zacks Equity Research
·2-min read

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. TimkenSteel (TMST) 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.

TimkenSteel is one of 251 companies in the Basic Materials group. The Basic Materials group currently sits at #10 within 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. TimkenSteel is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for TMST's full-year earnings has moved 11.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

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Our latest available data shows that TMST has returned about 210.5% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of 5%. This shows that TimkenSteel is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Tronox (TROX), has outperformed the sector so far this year. The stock's year-to-date return is 52.5%.

For Tronox, the consensus EPS estimate for the current year has increased 1.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, TimkenSteel is a member of the Steel - Producers industry, which includes 24 individual companies and currently sits at #26 in the Zacks Industry Rank. On average, this group has gained an average of 30.7% so far this year, meaning that TMST is performing better in terms of year-to-date returns.

In contrast, Tronox falls under the Chemical - Diversified industry. Currently, this industry has 41 stocks and is ranked #104. Since the beginning of the year, the industry has moved +12.5%.

Investors with an interest in Basic Materials stocks should continue to track TimkenSteel and Tronox. These stocks will be looking to continue their solid performance.


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Timken Steel Corporation (TMST) : Free Stock Analysis Report
 
Tronox Holdings PLC (TROX) : Free Stock Analysis Report
 
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Zacks Investment Research