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

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Cleveland-Cliffs (CLF - Free Report) closed at $15.33 in the latest trading session, marking a +0.86% move from the prior day. The stock lagged the S&P 500's daily gain of 2.6%.

Prior to today's trading, shares of the mining company had lost 0.98% over the past month. This has was narrower than the Basic Materials sector's loss of 10.77% and the S&P 500's loss of 12.9% in that time.

Wall Street will be looking for positivity from Cleveland-Cliffs as it approaches its next earnings report date. This is expected to be October 25, 2022. In that report, analysts expect Cleveland-Cliffs to post earnings of $0.75 per share. This would mark a year-over-year decline of 67.81%. Meanwhile, our latest consensus estimate is calling for revenue of $5.84 billion, down 2.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.24 per share and revenue of $23.77 billion, which would represent changes of -27.77% and +16.25%, respectively, from the prior year.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 4.32% lower. Cleveland-Cliffs is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, Cleveland-Cliffs currently has a Forward P/E ratio of 3.58. Its industry sports an average Forward P/E of 7.81, 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 industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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.

To follow CLF in the coming trading sessions, be sure to utilize Zacks.com.


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