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Is Cameco (CCJ) 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. 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 233 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Cameco is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CCJ's full-year earnings has moved 16.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, CCJ has moved about 29.1% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have gained about 9.5% on average. This means that Cameco is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Contango ORE, Inc. (CTGO - Free Report) . The stock is up 94.8% year-to-date.

For Contango ORE, Inc. the consensus EPS estimate for the current year has increased 158.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Cameco belongs to the Mining - Miscellaneous industry, a group that includes 58 individual companies and currently sits at #135 in the Zacks Industry Rank. This group has gained an average of 12.2% so far this year, so CCJ is performing better in this area. Contango ORE, Inc. is also part of the same industry.

Investors interested in the Basic Materials sector may want to keep a close eye on Cameco and Contango ORE, Inc. as they attempt to continue their solid performance.


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