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

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Ternium S.A. (TX - Free Report) closed at $45.96 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 0.18% gain on the day.

Coming into today, shares of the company had gained 4% in the past month. In that same time, the Basic Materials sector gained 6.25%, while the S&P 500 gained 2.96%.

Wall Street will be looking for positivity from TX as it approaches its next earnings report date. This is expected to be November 2, 2021. On that day, TX is projected to report earnings of $4.81 per share, which would represent year-over-year growth of 688.52%. Meanwhile, our latest consensus estimate is calling for revenue of $4.1 billion, up 91.84% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.28 per share and revenue of $15.62 billion, which would represent changes of +472.19% and +78.76%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 2.03% higher. TX is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, TX currently has a Forward P/E ratio of 2.66. This represents a discount compared to its industry's average Forward P/E of 4.5.

Investors should also note that TX has a PEG ratio of 0.14 right now. 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 0.18 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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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