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Is Cleveland-Cliffs (CLF) Outperforming Other Basic Materials Stocks This Year?

Zacks Equity Research

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? One simple way to answer this question is to take a look at the year-to-date performance of CLF and the rest of the Basic Materials group's stocks.

Cleveland-Cliffs is a member of our Basic Materials group, which includes 248 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. CLF is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CLF's full-year earnings has moved 7.24% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, CLF has returned 45.38% so far this year. Meanwhile, the Basic Materials sector has returned an average of 13.70% on a year-to-date basis. This means that Cleveland-Cliffs is outperforming the sector as a whole this year.

Looking more specifically, CLF belongs to the Mining - Miscellaneous industry, a group that includes 42 individual stocks and currently sits at #61 in the Zacks Industry Rank. Stocks in this group have gained about 18.52% so far this year, so CLF is performing better this group in terms of year-to-date returns.

CLF will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.


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