Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. CF Industries (CF) 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? 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.
CF Industries is a member of our Basic Materials group, which includes 248 different companies and currently sits at #11 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. CF Industries is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CF's full-year earnings has moved 54.8% 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, CF has returned 56.4% so far this year. In comparison, Basic Materials companies have returned an average of 17.3%. This means that CF Industries 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 Dow Inc. (DOW). The stock has returned 65.4% year-to-date.
In Dow Inc.'s case, the consensus EPS estimate for the current year increased 758.6% 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, a group that includes 6 individual stocks and currently sits at #23 in the Zacks Industry Rank. On average, this group has gained an average of 19.1% so far this year, meaning that CF is performing better in terms of year-to-date returns.
On the other hand, Dow Inc. belongs to the Chemical - Diversified industry. This 29-stock industry is currently ranked #164. The industry has moved +32.7% year to date.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to CF Industries and Dow Inc. as they could maintain their solid performance.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CF Industries Holdings, Inc. (CF): Free Stock Analysis Report
Dow Inc. (DOW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).