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Cleveland-Cliffs (CLF) closed at $10.05 in the latest trading session, marking a +1.52% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 1.89%.
The mining company's shares have seen a decrease of 19.38% over the last month, not keeping up with the Basic Materials sector's loss of 10.34% and the S&P 500's loss of 1.7%.
Investors will be eagerly watching for the performance of Cleveland-Cliffs in its upcoming earnings disclosure. The company is expected to report EPS of -$0.50, down 900% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.37 billion, down 14.49% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Cleveland-Cliffs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 39.29% lower. As of now, Cleveland-Cliffs holds a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Cleveland-Cliffs is holding a Forward P/E ratio of 81.53. This represents a premium compared to its industry's average Forward P/E of 13.08.
Investors should also note that CLF has a PEG ratio of 11.34 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Miscellaneous industry had an average PEG ratio of 3.77 as trading concluded yesterday.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.