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Is Cameco (CCJ) Stock Outpacing Its Basic Materials Peers 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. Is Cameco (CCJ - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Cameco is a member of our Basic Materials group, which includes 243 different companies and currently sits at #16 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. Cameco is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CCJ's full-year earnings has moved 22% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, CCJ has returned 14.5% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 10.3% on average. This means that Cameco is outperforming the sector as a whole this year.

CF Industries (CF - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 48.8%.

Over the past three months, CF Industries' consensus EPS estimate for the current year has increased 6.5%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Cameco belongs to the Mining - Miscellaneous industry, a group that includes 50 individual stocks and currently sits at #55 in the Zacks Industry Rank. On average, stocks in this group have lost 10% this year, meaning that CCJ is performing better in terms of year-to-date returns.

In contrast, CF Industries falls under the Fertilizers industry. Currently, this industry has 7 stocks and is ranked #83. Since the beginning of the year, the industry has moved +27%.

Investors with an interest in Basic Materials stocks should continue to track Cameco and CF Industries. These stocks will be looking to continue their solid performance.


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