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

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Cleveland-Cliffs (CLF - Free Report) closed the most recent trading day at $21.63, moving -1.19% from the previous trading session. This move lagged the S&P 500's daily gain of 1.47%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 7.94%.

Prior to today's trading, shares of the mining company had gained 27.27% over the past month. This has outpaced the Basic Materials sector's gain of 12.32% and the S&P 500's gain of 7.41% in that time.

Cleveland-Cliffs will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2023. On that day, Cleveland-Cliffs is projected to report earnings of -$0.30 per share, which would represent a year-over-year decline of 116.85%. Our most recent consensus estimate is calling for quarterly revenue of $5.37 billion, up 0.39% from the year-ago period.

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. 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. 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.

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 46.85% higher. Cleveland-Cliffs currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Cleveland-Cliffs has a Forward P/E ratio of 10.53 right now. Its industry sports an average Forward P/E of 11.09, 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 71, putting it in the top 29% 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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