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Is South32 (SOUHY) Outperforming Other Basic Materials Stocks This Year?

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 South32 Ltd. (SOUHY) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

South32 Ltd. is one of 240 companies in the Basic Materials group. The Basic Materials group currently sits at #11 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. South32 Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for SOUHY's full-year earnings has moved 15.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, SOUHY has returned 5.9% so far this year. In comparison, Basic Materials companies have returned an average of 5%. This means that South32 Ltd. is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Steel Dynamics (STLD). The stock is up 29.1% year-to-date.

The consensus estimate for Steel Dynamics' current year EPS has increased 26.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, South32 Ltd. belongs to the Mining - Miscellaneous industry, which includes 50 individual stocks and currently sits at #96 in the Zacks Industry Rank. Stocks in this group have gained about 0.6% so far this year, so SOUHY is performing better this group in terms of year-to-date returns.

On the other hand, Steel Dynamics belongs to the Steel - Producers industry. This 22-stock industry is currently ranked #22. The industry has moved +19.9% year to date.

Investors with an interest in Basic Materials stocks should continue to track South32 Ltd. and Steel Dynamics. These stocks will be looking to continue their solid performance.

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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report

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Zacks Investment Research