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Ternium S.A. (TX) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Ternium S.A. (TX) closed the most recent trading day at $21.51, moving +1.08% from the previous trading session. This change outpaced the S&P 500's 0.31% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.26%.

Heading into today, shares of the company had lost 3.27% over the past month, outpacing the Basic Materials sector's loss of 5.28% and lagging the S&P 500's gain of 1.18% in that time.

TX will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2020. On that day, TX is projected to report earnings of $0.39 per share, which would represent a year-over-year decline of 78.21%. Meanwhile, our latest consensus estimate is calling for revenue of $2.26 billion, down 14.33% from the prior-year quarter.

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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.69% lower. TX currently has a Zacks Rank of #3 (Hold).

Investors should also note TX's current valuation metrics, including its Forward P/E ratio of 8.81. This represents a discount compared to its industry's average Forward P/E of 11.98.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow TX in the coming trading sessions, be sure to utilize Zacks.com.

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