Cleveland-Cliffs (CLF) Gains But Lags Market: What You Should Know
In the latest trading session, Cleveland-Cliffs (CLF) closed at $17.95, marking a +0.39% move from the previous day. This change lagged the S&P 500's 1.42% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 5.16%.
Heading into today, shares of the mining company had lost 16.17% over the past month, lagging the Basic Materials sector's loss of 1.62% and the S&P 500's gain of 0.27% in that time.
Wall Street will be looking for positivity from Cleveland-Cliffs as it approaches its next earnings report date. In that report, analysts expect Cleveland-Cliffs to post earnings of -$0.21 per share. This would mark a year-over-year decline of 112.28%. Meanwhile, our latest consensus estimate is calling for revenue of $5.09 billion, down 14.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.82 per share and revenue of $20.74 billion, which would represent changes of -40.33% and -9.79%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cleveland-Cliffs. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 13.22% higher. Cleveland-Cliffs is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Cleveland-Cliffs is holding a Forward P/E ratio of 9.85. This represents a discount compared to its industry's average Forward P/E of 10.19.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% 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 CLF in the coming trading sessions, be sure to utilize Zacks.com.
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