Back to top

Image: Bigstock

Cleveland-Cliffs (CLF) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Cleveland-Cliffs (CLF - Free Report) closed at $32.45 in the latest trading session, marking a +0.28% move from the prior day. The stock lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.36%.

Coming into today, shares of the mining company had gained 24.7% in the past month. In that same time, the Basic Materials sector gained 11.08%, while the S&P 500 gained 5.64%.

Wall Street will be looking for positivity from Cleveland-Cliffs as it approaches its next earnings report date. This is expected to be April 22, 2022. On that day, Cleveland-Cliffs is projected to report earnings of $1.82 per share, which would represent year-over-year growth of 420%. Our most recent consensus estimate is calling for quarterly revenue of $5.81 billion, up 43.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.59 per share and revenue of $23.06 billion, which would represent changes of -4.77% and +12.78%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Cleveland-Cliffs. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.

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 14.56% higher within the past month. Cleveland-Cliffs currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Cleveland-Cliffs has a Forward P/E ratio of 5.79 right now. Its industry sports an average Forward P/E of 10.04, so we one might conclude that Cleveland-Cliffs is trading at a discount comparatively.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cleveland-Cliffs Inc. (CLF) - free report >>

Published in