Cleveland-Cliffs (CLF) Outpaces Stock Market Gains: What You Should Know
Cleveland-Cliffs (CLF) closed at $21.62 in the latest trading session, marking a +1.6% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 7.26%.
Heading into today, shares of the mining company had gained 29.05% over the past month, outpacing the Basic Materials sector's gain of 10.34% and the S&P 500's gain of 5.73% in that time.
Wall Street will be looking for positivity from Cleveland-Cliffs as it approaches its next earnings report date. This is expected to be February 14, 2023. In that report, analysts expect Cleveland-Cliffs to post earnings of -$0.30 per share. This would mark a year-over-year decline of 116.85%. Meanwhile, our latest consensus estimate is calling for revenue of $5.37 billion, up 0.39% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Cleveland-Cliffs. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 52.08% higher within the past month. Cleveland-Cliffs is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Cleveland-Cliffs has a Forward P/E ratio of 9.89 right now. This valuation marks a discount compared to its industry's average Forward P/E of 11.79.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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