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

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Ternium S.A. (TX) closed at $43.21 in the latest trading session, marking a -0.16% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%.

Heading into today, shares of the company had lost 15.58% over the past month, lagging the Basic Materials sector's loss of 2.71% and the S&P 500's loss of 2.37% in that time.

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. In that report, analysts expect TX to post earnings of $4.62 per share. This would mark year-over-year growth of 657.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.1 billion, up 91.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.93 per share and revenue of $15.54 billion, which would represent changes of +460.6% and +77.91%, respectively, from the prior year.

Any recent changes to analyst estimates for TX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant within the past month. TX is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, TX is holding a Forward P/E ratio of 2.56. For comparison, its industry has an average Forward P/E of 4.27, which means TX is trading at a discount to the group.

Also, we should mention that TX has a PEG ratio of 0.14. 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. The Steel - Producers was holding an average PEG ratio of 0.18 at yesterday's closing price.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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