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 CalMaine Foods (CALM - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
CalMaine Foods is a member of our Basic Materials group, which includes 239 different companies and currently sits at #6 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. CALM is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CALM's full-year earnings has moved 6.83% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CALM has returned about 1.29% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have lost about 10.10% on average. This shows that CalMaine Foods is outperforming its peers so far this year.
Breaking things down more, CALM is a member of the Agriculture - Products industry, which includes 6 individual companies and currently sits at #13 in the Zacks Industry Rank. On average, stocks in this group have lost 27.05% this year, meaning that CALM is performing better in terms of year-to-date returns.
Investors in the Basic Materials sector will want to keep a close eye on CALM as it attempts to continue its solid performance.