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Is CalMaine Foods (CALM) 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. Is Cal-Maine Foods (CALM - 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.

Cal-Maine Foods is one of 243 individual stocks in the Basic Materials sector. Collectively, these companies sit 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 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).

The Zacks Consensus Estimate for CALM's full-year earnings has moved 43.8% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, CALM has gained about 54.8% so far this year. In comparison, Basic Materials companies have returned an average of -11.2%. This means that Cal-Maine Foods is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Clearwater Paper (CLW - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 0.9%.

The consensus estimate for Clearwater Paper's current year EPS has increased 8.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Cal-Maine Foods belongs to the Agriculture - Products industry, a group that includes 7 individual companies and currently sits at #57 in the Zacks Industry Rank. On average, stocks in this group have lost 6.3% this year, meaning that CALM is performing better in terms of year-to-date returns.

Clearwater Paper, however, belongs to the Paper and Related Products industry. Currently, this 13-stock industry is ranked #136. The industry has moved -17.8% so far this year.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Cal-Maine Foods and Clearwater Paper as they could maintain their solid performance.


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