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Ternium S.A. (TX) Gains But Lags Market: What You Should Know

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In the latest trading session, Ternium S.A. (TX) closed at $44.63, marking a +0.81% move from the previous day. This change lagged the S&P 500's 0.98% gain on the day.

Coming into today, shares of the company had gained 3.6% in the past month. In that same time, the Basic Materials sector gained 2.23%, while the S&P 500 gained 2.57%.

Wall Street will be looking for positivity from TX as it approaches its next earnings report date. This is expected to be November 2, 2021. The company is expected to report EPS of $5.31, up 770.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.3 billion, up 101.1% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $19.14 per share and revenue of $15.86 billion, which would represent changes of +533.77% and +81.51%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 13.01% higher within the past month. TX is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that TX has a Forward P/E ratio of 2.31 right now. This valuation marks a discount compared to its industry's average Forward P/E of 4.45.

Meanwhile, TX's PEG ratio is currently 0.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Steel - Producers stocks are, on average, holding a PEG ratio of 0.19 based on yesterday's closing prices.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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