The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cleveland-Cliffs (CLF) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Cleveland-Cliffs is one of 248 individual stocks in the Basic Materials sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CLF is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CLF's full-year earnings has moved 3.15% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, CLF has moved about 4.16% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 3.13%. This means that Cleveland-Cliffs is performing better than its sector in terms of year-to-date returns.
Looking more specifically, CLF belongs to the Mining - Miscellaneous industry, which includes 42 individual stocks and currently sits at #110 in the Zacks Industry Rank. This group has gained an average of 4.82% so far this year, so CLF is slightly underperforming its industry in this area.
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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