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Is Bunge (BG) Outperforming Other Basic Materials Stocks This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Bunge (BG - 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.

Bunge is a member of the Basic Materials sector. This group includes 251 individual stocks and currently holds a Zacks Sector Rank of #8. 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 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. Bunge is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for BG's full-year earnings has moved 36.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, BG has returned 38.9% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 10.5% on average. This shows that Bunge is outperforming its peers so far this year.

Another stock in the Basic Materials sector, CF Industries (CF - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 90.8%.

Over the past three months, CF Industries' consensus EPS estimate for the current year has increased 23.9%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Bunge is a member of the Agriculture - Products industry, which includes 7 individual companies and currently sits at #16 in the Zacks Industry Rank. This group has gained an average of 31.7% so far this year, so BG is performing better in this area.

On the other hand, CF Industries belongs to the Fertilizers industry. This 7-stock industry is currently ranked #11. The industry has moved +44% year to date.

Bunge and CF Industries 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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