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Is ClevelandCliffs (CLF) Stock Outpacing Its Basic Materials Peers This Year?

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 Cleveland-Cliffs (CLF) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Cleveland-Cliffs is one of 238 individual stocks in the Basic Materials sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Cleveland-Cliffs is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for CLF's full-year earnings has moved 9% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, CLF has returned 27.9% so far this year. In comparison, Basic Materials companies have returned an average of 4.5%. 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 Piedmont Lithium Inc. (PLL). The stock has returned 48.7% year-to-date.

For Piedmont Lithium Inc. the consensus EPS estimate for the current year has increased 5.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Cleveland-Cliffs belongs to the Mining - Miscellaneous industry, which includes 49 individual stocks and currently sits at #87 in the Zacks Industry Rank. On average, stocks in this group have gained 12% this year, meaning that CLF is performing better in terms of year-to-date returns. Piedmont Lithium Inc. is also part of the same industry.

Investors with an interest in Basic Materials stocks should continue to track Cleveland-Cliffs and Piedmont Lithium Inc. These stocks will be looking to continue their solid performance.

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Piedmont Lithium Inc. (PLL) : Free Stock Analysis Report

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