Cleveland-Cliffs (CLF) Outpaces Stock Market Gains: What You Should Know
Cleveland-Cliffs (CLF) closed the most recent trading day at $16.72, moving +0.6% from the previous trading session. This change outpaced the S&P 500's 0.17% gain on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.38%.
Heading into today, shares of the mining company had lost 6.52% over the past month, lagging the Basic Materials sector's loss of 3.14% and the S&P 500's gain of 2.33% in that time.
CLF will be looking to display strength as it nears its next earnings release, which is expected to be February 25, 2021. On that day, CLF is projected to report earnings of $0.28 per share, which would represent year-over-year growth of 12%. Our most recent consensus estimate is calling for quarterly revenue of $2.31 billion, up 332.33% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CLF. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 5.75% higher within the past month. CLF is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, CLF currently has a Forward P/E ratio of 5.42. This valuation marks a discount compared to its industry's average Forward P/E of 12.01.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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