Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Cabot (CBT) 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.
Cabot is a member of our Basic Materials group, which includes 275 different companies and currently sits at #14 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. Cabot is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CBT's full-year earnings has moved 1.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CBT has returned about 34.4% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 7.4% on a year-to-date basis. As we can see, Cabot is performing better than its sector in the calendar year.
Another Basic Materials stock, which has outperformed the sector so far this year, is CF Industries (CF). The stock has returned 63.8% year-to-date.
Over the past three months, CF Industries' consensus EPS estimate for the current year has increased 27.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cabot is a member of the Chemical - Diversified industry, which includes 31 individual companies and currently sits at #91 in the Zacks Industry Rank. This group has gained an average of 18.6% so far this year, so CBT is performing better in this area.
In contrast, CF Industries falls under the Fertilizers industry. Currently, this industry has 6 stocks and is ranked #70. Since the beginning of the year, the industry has moved +17.2%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Cabot and CF Industries as they could maintain their solid performance.
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