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Cleveland-Cliffs (CLF) Outpaces Stock Market Gains: What You Should Know

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Cleveland-Cliffs (CLF - Free Report) closed the most recent trading day at $23.32, moving +1.48% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq added 0.14%.

Heading into today, shares of the mining company had lost 4.73% over the past month, lagging the Basic Materials sector's gain of 0.45% and the S&P 500's loss of 1.38% in that time.

Cleveland-Cliffs will be looking to display strength as it nears its next earnings release. In that report, analysts expect Cleveland-Cliffs to post earnings of $1.48 per share. This would mark year-over-year growth of 1.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.14 billion, up 21.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.14 per share and revenue of $24.24 billion. These totals would mark changes of +4.6% and +18.57%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Cleveland-Cliffs. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 4.3% higher. Cleveland-Cliffs is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Cleveland-Cliffs is holding a Forward P/E ratio of 3.75. This represents a discount compared to its industry's average Forward P/E of 9.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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