Bear of the Day: Ternium (TX)
The market has been coming under pressure over the last few weeks. February has brought sellers along with it. It is making investors very nervous. How do you know if the stock you are in will recover from the selling? One way is to invest in stocks with strong earnings trends, and avoid loading the boat on stocks with weak trends.
Stocks which are Zacks Rank #5 (Strong Sell) stocks have some of the weakest earnings trends in the market. Many times, investors are not even aware that estimates have begun to come down. One such stock is todays’ Bear of the Day, Ternium TX.
Ternium is a multinational steel company that is headquartered in Luxembourg and operates in several countries around the world. The company produces and processes flat and long steel products for a wide range of industries, including construction, automotive, appliances, energy, and packaging.
Ternium operates several steel mills, processing facilities, and distribution centers, and produces a variety of steel products, including hot-rolled and cold-rolled coils, galvanized and electro-galvanized sheets, pre-painted sheets, and welded pipes.
Image Source: Zacks Investment Research
The reason the stock is not in the good graces of our Zacks Rank is analysts have been cutting earnings for the current year and next year. The bearish moves have dropped our Zacks Consensus Estimate from $4.01 to $3.48 for the current year and $4.27 to $4.22 for next year.
The Steel – Producers industry is in the Top 20% of our Zacks Industry Rank. There are a few stocks within this industry that are Zacks Rank #1 (Strong Buy) stocks. These include ArcelorMittal MT and Nucor NUE.
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ArcelorMittal (MT) : Free Stock Analysis Report
Nucor Corporation (NUE) : Free Stock Analysis Report
Ternium S.A. (TX) : Free Stock Analysis Report
