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Is CF Industries (CF) Outperforming Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. CF Industries (CF - 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? Let's take a closer look at the stock's year-to-date performance to find out.

CF Industries is a member of the Basic Materials sector. This group includes 236 individual stocks and currently holds a Zacks Sector Rank of #15. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. CF Industries is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CF's full-year earnings has moved 19.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CF has returned about 2.7% since the start of the calendar year. At the same time, Basic Materials stocks have lost an average of 2.6%. This shows that CF Industries is outperforming its peers so far this year.

CSW Industrials is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 72.9%.

For CSW Industrials, the consensus EPS estimate for the current year has increased 2.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, CF Industries belongs to the Fertilizers industry, a group that includes 8 individual stocks and currently sits at #214 in the Zacks Industry Rank. This group has lost an average of 18.8% so far this year, so CF is performing better in this area.

On the other hand, CSW Industrials belongs to the Chemical - Specialty industry. This 33-stock industry is currently ranked #207. The industry has moved -16.7% year to date.

CF Industries and CSW Industrials 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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