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Has ClevelandCliffs (CLF) Outpaced Other Basic Materials Stocks This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Cleveland-Cliffs (CLF - Free Report) 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? 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 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 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. Cleveland-Cliffs 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 0.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, CLF has moved about 47.1% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 15.7%. This means that Cleveland-Cliffs is performing better than its sector in terms of year-to-date returns.

Another Basic Materials stock, which has outperformed the sector so far this year, is Southern Copper (SCCO - Free Report) . The stock has returned 20.9% year-to-date.

The consensus estimate for Southern Copper's current year EPS has increased 4.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Cleveland-Cliffs is a member of the Mining - Miscellaneous industry, which includes 49 individual companies and currently sits at #48 in the Zacks Industry Rank. This group has gained an average of 31.9% so far this year, so CLF is performing better in this area.

On the other hand, Southern Copper belongs to the Mining - Non Ferrous industry. This 11-stock industry is currently ranked #156. The industry has moved +1.8% year to date.

Cleveland-Cliffs and Southern Copper 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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