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Has CF Industries (CF) 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. Has CF Industries (CF - Free Report) 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 one of 242 companies in the Basic Materials group. The Basic Materials group currently sits at #13 within 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 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. CF Industries is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CF's full-year earnings has moved 11.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, CF has moved about 27.7% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have lost about 12.8% on average. This means that CF Industries is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Mercer International (MERC - Free Report) . The stock is up 35% year-to-date.

In Mercer International's case, the consensus EPS estimate for the current year increased 31.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, CF Industries belongs to the Fertilizers industry, which includes 7 individual stocks and currently sits at #35 in the Zacks Industry Rank. Stocks in this group have gained about 21.9% so far this year, so CF is performing better this group in terms of year-to-date returns.

On the other hand, Mercer International belongs to the Paper and Related Products industry. This 13-stock industry is currently ranked #90. The industry has moved -13.8% year to date.

Investors with an interest in Basic Materials stocks should continue to track CF Industries and Mercer International. These stocks will be looking to continue their solid performance.


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