Here's Why Cleveland-Cliffs (CLF) Fell More Than Broader Market
Cleveland-Cliffs (CLF) closed at $20.81 in the latest trading session, marking a -1.61% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.47%. Elsewhere, the Dow lost 1.27%, while the tech-heavy Nasdaq lost 1.5%.
The the stock of mining company has risen by 25.22% in the past month, leading the Basic Materials sector's gain of 8.65% and the S&P 500's gain of 5.77%.
Investors will be eagerly watching for the performance of Cleveland-Cliffs in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0, marking a 100% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.17 billion, indicating a 2.46% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.10 per share and revenue of $22.05 billion, which would represent changes of -63.93% and -4.08%, respectively, from the prior year.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.47% higher. Currently, Cleveland-Cliffs is carrying a Zacks Rank of #3 (Hold).
Investors should also note Cleveland-Cliffs's current valuation metrics, including its Forward P/E ratio of 19.16. This valuation marks a premium compared to its industry's average Forward P/E of 12.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 33% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report
