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Is CF Industries (CF) Stock Outpacing Its Basic Materials Peers This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has CF Industries (CF) been one of those stocks this year? 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.

CF Industries is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. CF Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for CF's full-year earnings has moved 28% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, CF has moved about 36.8% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 4.2% on average. This means that CF Industries is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Amerigo Resources (ARREF), has outperformed the sector so far this year. The stock's year-to-date return is 8.5%.

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).

To break things down more, CF Industries belongs to the Fertilizers industry, a group that includes 7 individual companies and currently sits at #3 in the Zacks Industry Rank. On average, this group has gained an average of 33.3% so far this year, meaning that CF is performing better in terms of year-to-date returns.

Amerigo Resources, however, belongs to the Mining - Non Ferrous industry. Currently, this 11-stock industry is ranked #89. The industry has moved -16.1% so far this year.

CF Industries and Amerigo Resources could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


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