Cleveland-Cliffs (CLF) Gains But Lags Market: What You Should Know
In the latest trading session, Cleveland-Cliffs (CLF) closed at $15.19, marking a +0.07% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the mining company had lost 36.51% over the past month, lagging the Basic Materials sector's loss of 25.75% and the S&P 500's loss of 6.59% in that time.
Investors will be hoping for strength from Cleveland-Cliffs as it approaches its next earnings release. In that report, analysts expect Cleveland-Cliffs to post earnings of $1.40 per share. This would mark a year-over-year decline of 4.11%. Our most recent consensus estimate is calling for quarterly revenue of $6.08 billion, up 20.6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.50 per share and revenue of $23.94 billion, which would represent changes of -6.3% and +17.12%, respectively, from the prior year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.2% lower. Cleveland-Cliffs is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cleveland-Cliffs has a Forward P/E ratio of 2.76 right now. This valuation marks a discount compared to its industry's average Forward P/E of 6.42.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.
To follow CLF in the coming trading sessions, be sure to utilize Zacks.com.
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
ClevelandCliffs Inc. (CLF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
