Benzinga - by Zacks, Benzinga Contributor.
The most recent trading session ended with Cleveland-Cliffs (NYSE: CLF) standing at $14.45, reflecting a -1.97% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow saw a downswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.16%.
The the stock of mining company has fallen by 12.83% in the past month, lagging the Basic Materials sector's loss of 3.97% and the S&P 500's gain of 2.83%.
Analysts and investors alike will be keeping a close eye on the performance of Cleveland-Cliffs in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.04, indicating a 94.2% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.28 billion, showing a 11.8% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.48 per share and revenue of $21.05 billion, indicating changes of -55.14% and -4.29%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Cleveland-Cliffs. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 49.12% lower within the past month. Currently, Cleveland-Cliffs is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Cleveland-Cliffs is currently trading at a Forward P/E ratio of 30.5. This valuation marks a premium compared to its industry's average Forward P/E of 15.52.
It's also important to note that CLF currently trades at a PEG ratio of 0.66. 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. As the market closed yesterday, the Mining - Miscellaneous industry was having an average PEG ratio of 2.53.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.
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