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Cleveland-Cliffs (CLF) Gains As Market Dips: What You Should Know

Cleveland-Cliffs (CLF) closed at $20.21 in the latest trading session, marking a +0.2% move from the prior day. This change outpaced the S&P 500's 1.11% loss on the day. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, lost 2.13%.

Prior to today's trading, shares of the mining company had gained 7.23% over the past month. This has outpaced the Basic Materials sector's gain of 4.33% and the S&P 500's gain of 7% in that time.

Wall Street will be looking for positivity from Cleveland-Cliffs as it approaches its next earnings report date. This is expected to be February 14, 2023. In that report, analysts expect Cleveland-Cliffs to post earnings of -$0.30 per share. This would mark a year-over-year decline of 116.85%. Our most recent consensus estimate is calling for quarterly revenue of $5.35 billion, up 0.03% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Cleveland-Cliffs. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 21.81% higher. Cleveland-Cliffs currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Cleveland-Cliffs has a Forward P/E ratio of 9.71 right now. For comparison, its industry has an average Forward P/E of 10.47, which means Cleveland-Cliffs is trading at a discount to the group.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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