Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Clearwater Paper (CLW) 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.
Clearwater Paper is one of 242 companies in the Basic Materials group. The Basic Materials group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Clearwater Paper is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CLW’s full-year earnings has moved 8.3% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the most recent data, CLW has returned 7% so far this year. In comparison, Basic Materials companies have returned an average of 1.5%. This shows that Clearwater Paper is outperforming its peers so far this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Glencore PLC (GLNCY). The stock has returned 36% year-to-date.
The consensus estimate for Glencore PLC’s current year EPS has increased 5.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Clearwater Paper belongs to the Paper and Related Products industry, a group that includes 13 individual stocks and currently sits at #157 in the Zacks Industry Rank. Stocks in this group have lost about 12.4% so far this year, so CLW is performing better this group in terms of year-to-date returns.
On the other hand, Glencore PLC belongs to the Mining – Miscellaneous industry. This 50-stock industry is currently ranked #163. The industry has moved +3.3% year to date.
Investors interested in the Basic Materials sector may want to keep a close eye on Clearwater Paper and Glencore PLC as they attempt to continue their solid performance.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
