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

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In the latest trading session, Ternium S.A. (TX - Free Report) closed at $38.82, marking a +0.94% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.52%.

Coming into today, shares of the company had gained 2.94% in the past month. In that same time, the Basic Materials sector lost 4.56%, while the S&P 500 gained 2.25%.

Investors will be hoping for strength from TX as it approaches its next earnings release. In that report, analysts expect TX to post earnings of $2.49 per share. This would mark year-over-year growth of 2390%. Meanwhile, our latest consensus estimate is calling for revenue of $3.61 billion, up 107.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.51 per share and revenue of $13.84 billion, which would represent changes of +314.24% and +58.43%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TX. 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.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.84% higher. TX currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TX has a Forward P/E ratio of 3.07 right now. This valuation marks a discount compared to its industry's average Forward P/E of 6.46.

Investors should also note that TX has a PEG ratio of 0.19 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Producers was holding an average PEG ratio of 0.31 at yesterday's closing price.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% 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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