Cleveland-Cliffs (CLF) Dips More Than Broader Markets: What You Should Know
Cleveland-Cliffs (CLF) closed the most recent trading day at $14.28, moving -1.92% from the previous trading session. This move lagged the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the mining company had lost 18.57% over the past month. This has lagged the Basic Materials sector's loss of 5.04% and the S&P 500's loss of 8.68% in that time.
Investors will be hoping for strength from Cleveland-Cliffs as it approaches its next earnings release. The company is expected to report EPS of $0.91, down 60.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.71 billion, down 4.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.43 per share and revenue of $23.49 billion. These totals would mark changes of -24.53% and +14.92%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Cleveland-Cliffs. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.54% lower. Cleveland-Cliffs is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Cleveland-Cliffs has a Forward P/E ratio of 3.29 right now. For comparison, its industry has an average Forward P/E of 7.87, which means Cleveland-Cliffs is trading at a discount to the group.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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