Cleveland-Cliffs (CLF) Stock Drops Despite Market Gains: Important Facts to Note
Cleveland-Cliffs (CLF) closed at $20.47 in the latest trading session, marking a -0.29% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.
Heading into today, shares of the mining company had gained 4.91% over the past month, lagging the Basic Materials sector's gain of 5.41% and outpacing the S&P 500's gain of 2.06% in that time.
The upcoming earnings release of Cleveland-Cliffs will be of great interest to investors. On that day, Cleveland-Cliffs is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 409.09%. Simultaneously, our latest consensus estimate expects the revenue to be $5.29 billion, showing a 0.14% drop compared to the year-ago quarter.
CLF's full-year Zacks Consensus Estimates are calling for earnings of $2.05 per share and revenue of $21.57 billion. These results would represent year-over-year changes of +91.59% and -1.95%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cleveland-Cliffs. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.42% lower within the past month. As of now, Cleveland-Cliffs holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Cleveland-Cliffs is holding a Forward P/E ratio of 10.03. For comparison, its industry has an average Forward P/E of 16.58, which means Cleveland-Cliffs is trading at a discount to the group.
It is also worth noting that CLF currently has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Miscellaneous was holding an average PEG ratio of 3.19 at yesterday's closing price.
The Mining - Miscellaneous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report
