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Has Cleveland-Cliffs (CLF) Outpaced Other Basic Materials Stocks This Year?

Zacks Equity Research
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Investors focused on the Basic Materials space have likely heard of Cleveland-Cliffs (CLF), but is the stock performing well in comparison to the rest of its sector peers? 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.

Cleveland-Cliffs is a member of the Basic Materials sector. This group includes 247 individual stocks and currently holds a Zacks Sector Rank of #15. 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 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. CLF is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CLF's full-year earnings has moved 18.93% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CLF has returned about 59.22% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -10.47%. This shows that Cleveland-Cliffs is outperforming its peers so far this year.

To break things down more, CLF belongs to the Mining - Miscellaneous industry, a group that includes 40 individual companies and currently sits at #166 in the Zacks Industry Rank. On average, this group has lost an average of 5.04% so far this year, meaning that CLF is performing better in terms of year-to-date returns.

Investors in the Basic Materials sector will want to keep a close eye on CLF as it attempts to continue its solid performance.


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