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Is CalMaine Foods (CALM) Stock Outpacing Its Basic Materials Peers 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. Cal-Maine Foods (CALM - 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.

Cal-Maine Foods is one of 242 individual stocks in the Basic Materials sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. 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. Cal-Maine Foods is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CALM's full-year earnings has moved 251.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, CALM has gained about 46% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 12.9% on average. This means that Cal-Maine Foods 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 Cabot (CBT - Free Report) . The stock has returned 24.4% year-to-date.

The consensus estimate for Cabot's current year EPS has increased 6.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Cal-Maine Foods is a member of the Agriculture - Products industry, which includes 7 individual companies and currently sits at #99 in the Zacks Industry Rank. On average, stocks in this group have lost 2.2% this year, meaning that CALM is performing better in terms of year-to-date returns.

On the other hand, Cabot belongs to the Chemical - Diversified industry. This 35-stock industry is currently ranked #187. The industry has moved -14.4% year to date.

Investors with an interest in Basic Materials stocks should continue to track Cal-Maine Foods and Cabot. These stocks will be looking to continue their solid performance.


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