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

Zacks Equity Research
·3 min read

In the latest trading session, Ternium S.A. (TX) closed at $38.56, marking a -0.92% move from the previous day. This change lagged the S&P 500's daily gain of 0.77%.

Coming into today, shares of the company had gained 7.62% in the past month. In that same time, the Basic Materials sector gained 6.33%, while the S&P 500 gained 7.34%.

Investors will be hoping for strength from TX as it approaches its next earnings release, which is expected to be April 27, 2021. The company is expected to report EPS of $2.25, up 150% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.89 per share and revenue of $11.26 billion, which would represent changes of +128.15% and +28.95%, respectively, from the prior year.

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Any recent changes to analyst estimates for TX should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 2.68% higher. TX currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, TX is currently trading at a Forward P/E ratio of 5.72. Its industry sports an average Forward P/E of 9.35, so we one might conclude that TX is trading at a discount comparatively.

We can also see that TX currently has a PEG ratio of 0.51. 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. The Steel - Producers industry currently had an average PEG ratio of 0.66 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.

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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