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

Ternium S.A. (TX) closed the most recent trading day at $42.81, moving +0.71% from the previous trading session. This change outpaced the S&P 500's 0.14% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.34%.

Prior to today's trading, shares of the company had gained 11.31% over the past month. This has outpaced the Basic Materials sector's gain of 4% and the S&P 500's gain of 4.32% in that time.

Ternium S.A. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ternium S.A. to post earnings of $4.91 per share. This would mark year-over-year growth of 132.7%. Meanwhile, our latest consensus estimate is calling for revenue of $4.65 billion, up 80.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $19.31 per share and revenue of $16.4 billion, which would represent changes of +539.4% and +87.76%, respectively, from the prior year.

Any recent changes to analyst estimates for Ternium S.A. should also be noted by investors. 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. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Ternium S.A. is currently a Zacks Rank #3 (Hold).

Investors should also note Ternium S.A.'s current valuation metrics, including its Forward P/E ratio of 2.2. This valuation marks a discount compared to its industry's average Forward P/E of 3.84.

Meanwhile, TX's PEG ratio is currently 0.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TX's industry had an average PEG ratio of 0.14 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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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