Cleveland-Cliffs (CLF) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Cleveland-Cliffs (CLF) closed at $21.25, marking a +1.67% move from the previous day. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 1.54%.
Coming into today, shares of the mining company had gained 3.62% in the past month. In that same time, the Basic Materials sector lost 3.08%, while the S&P 500 lost 4.07%.
Wall Street will be looking for positivity from Cleveland-Cliffs as it approaches its next earnings report date. In that report, analysts expect Cleveland-Cliffs to post earnings of -$0.22 per share. This would mark a year-over-year decline of 112.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.1 billion, down 14.35% from the year-ago period.
CLF's full-year Zacks Consensus Estimates are calling for earnings of $1.69 per share and revenue of $20.22 billion. These results would represent year-over-year changes of -44.59% and -12.04%, respectively.
Any recent changes to analyst estimates for Cleveland-Cliffs should also be noted by investors. 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. The Zacks Consensus EPS estimate has moved 18.67% lower within the past month. Cleveland-Cliffs currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cleveland-Cliffs currently has a Forward P/E ratio of 12.37. Its industry sports an average Forward P/E of 10.16, so we one might conclude that Cleveland-Cliffs is trading at a premium comparatively.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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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Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report
