The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. CF Industries (CF) 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? Let’s take a closer look at the stock’s year-to-date performance to find out.
CF Industries is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. CF Industries is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for CF’s full-year earnings has moved 33.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CF has returned about 53.2% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 15.3% on average. As we can see, CF Industries is performing better than its sector in the calendar year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Amerigo Resources (ARREF). The stock has returned 21.6% year-to-date.
For Amerigo Resources, the consensus EPS estimate for the current year has increased 6.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CF Industries is a member of the Fertilizers industry, which includes 7 individual companies and currently sits at #3 in the Zacks Industry Rank. On average, this group has gained an average of 52.8% so far this year, meaning that CF is performing better in terms of year-to-date returns.
In contrast, Amerigo Resources falls under the Mining – Non Ferrous industry. Currently, this industry has 11 stocks and is ranked #159. Since the beginning of the year, the industry has moved +0.7%.
Investors interested in the Basic Materials sector may want to keep a close eye on CF Industries and Amerigo Resources as they attempt to continue their solid performance.
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